MicroTA and daytrading 2?
Daytrading with high flyers, MicroTA using trend lines can determine breakdown and breakout. Which is overbought and oversold. Which is how you determine the strategy of selling first or buying first. Which does not tell you the spread of bid and ask, yet which can set limit order price target. Which can also tell you the size of your limit order that the market can handle by the volume of the last few trades.
Daytrading with wall flowers, MicroTA can establish trend lines of resistance and support. MicroTA moving day average can establish the size of the market, meaning how much a wall flower is this stock. offers at 15-25% below the moving day average qualifies the stock as a wall flower. Since the resistance and support is the spread, in most cases, buy at bid price and sell at ask price is how you make the money. Size of the limit order, has to overcome the barrier of commission cost. The volume of the market, depending whether it is overbought or oversold, will tell you what is the idea size of the limit order you should place. Overbought and oversold in price trends tells the shortage of stock or over supply of stock. The volume of overbought and oversold, is counted beginning at a price shift. The number of shares does not have to be accurate since monthly short interest should be added to the numbers. The outstanding shares limits the float, overbought is more frequent than oversold. Therefore, it is always an advantage to sell at ask price first, then use the cash to buy back at the bid price. You should own some stock first. Spread tightness determines whether to buy first. But you may have to trade 33 times a day to make any money, which can not be done with a wall flower. You will be caught by brokers or market makers for the repeated scalping. Unless you have many wall flowers?
This is just the beginning to look at the science of understanding MicroTA and daytrading. |
