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: Dan Duchardt who wrote (147)	5/29/2001 10:19:03 PM
From: KymarFye	of 565

DrFibo must mean that, on any given day, stocks will tend to trade either below or above their opens 90% of the time (i.e., for 90% of a given session). I agree with you that the way that he phrased his observation seemed to indicate something different and obviously inaccurate. Still, the observation that he makes as to the open functioning as support or resistance is in my observation reasonable. Indeed, the way in which price movement deals with the open when put to the test is the basis of numerous well-known strategies. All the same, I don't believe that the raw statistic, which borders on a truism (whether or not it's precisely accurate), would prove the point, or really say very much at all. If price during a given trading session never approaches or re-approaches the open, as often occurs, then there's never any opportunity for it to function as support or resistance. Conversely, those sessions during which price successfully re-crosses the opening price after some greater or lesser movement in the opposite direction can be among the most interesting.

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