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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade
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To: Kal who wrote (115)1/8/1998 6:04:00 PM
From: Ken Wolff  Read Replies (1) of 2120
 
Hi Kal,

If there is a relatively big gap between ask and bid price of a stock, what does it tell about the momentum of a stock?

A large gap usually means a stock is traded at a low volume and tends to let me know there is not much interest (momentum) in the stock. I will not play them as they can lead to excessive losses unless there is a very hot story.

Ken
mtrader.com
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