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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade

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To: H-Man who wrote (2017)7/26/1999 6:37:00 PM
From: Ken Wolff  Read Replies (2) of 2120
 
I often get questions from traders about trading volume. Here is a general rule of thumb I use everyday:

I personally look at the highest volume momentum stocks (those with fresh news) and from them take comparisons every 5 minutes. One also must take into account the overall market volume which changes every day. But a generalization on say a $20 stock would be for the first 5 minutes: 100K considered high volume, 50K medium volume, 10K low volume. Many of the big stocks will be at 500K in the first 5 minutes. Handling variables in the market requires more understanding and flexibility. The best is to compare with the highest volume stock and move down the ladder.

Ken Wolff
www.mtrader.com
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