DAYTRADING/SWINGTRADING STOCKS with INTRADAY INVESTMENTS Message Board

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Strategies & Market Trends : DAYTRADING/SWINGTRADING STOCKS with INTRADAY INVESTMENTS

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To: drfibo who wrote (146)	5/29/2001 9:53:14 PM
From: Dan Duchardt	Read Replies (1) of 565

Dear DrFibo, The opening price for a security is the high or low of the day for that stock about 90% of the time. I'm wondering if this statement needs to be qualified a bit. If it were literally true, it seems to me trading would be extraordinarily easy. One could simply buy everything one could find with the first 1 minute bar up a few ticks, and sell everything one could find with the first 1 minute bar down a few ticks and not lose 90% of the time. I think it would also mean that dojis, spinning tops, "up" hammers, and "down" inverted hammers would be rare birds on a daily chart. I have no hard data to refute the statistics, but I have plenty of wounds from trying to trade with the early "trend" and getting severely whipped by what seems to me to be plentiful traps. What am I missing? I do think it would be very interesting to know the statistics of candle body length as a percentage of the range, and if there is some correlation between the lengths of upper and lower shadows and the early day movement of a stock price. Definitely some food for thought. Dan

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