MDA - Market Direction Analysis Message Board

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Strategies & Market Trends : MDA - Market Direction Analysis

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Nov 28 4:00 PM EST

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To: donald sew who wrote (16446)	6/8/1999 4:50:00 PM
From: John Madarasz	Read Replies (2) of 99985

Donald; An interesting aside... Dr Alexander Elder in his book "Trading For A Living" notes: "In bull markets prices often make their low for the week on Monday or Tuesday on profit taking by amateurs, then rally to a new high on Thursday or Friday. ... Traders need to pay attention to the relationship between opening and closing prices. If prices closed higher than they opened, then market professionals were probably more bullish than amateurs. If prices closed lower than they opened, then market professionals were probably more bearish than amateurs. It pays to trade with the professionals and against the amateurs." pps.71-72 I have studied this tactic quite a bit and used it with relatively good success in my limited trading experience. It seems to be a pretty good indicator, albiet a somewhat primitive one in regards to the T/A so competently offered here. Many thanks to you and all the folks who take the time to share your expertise. Best Regards and Good Trading, John Madarasz

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