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

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To: Ken Wolff who wrote (600)2/25/1998 12:43:00 AM
From: Ken Wolff  Read Replies (3) of 2120
 
INTRA-DAY CYCLES (Part II)

It is important to note the general trading cycles that occur intraday. The largest movements a stock will make usually occurs in the FIRST 2 HOURS after open. Of these two hours, the FIRST 1/2 HOUR will usually see the most action. The exceptions are news stories which can move stocks at any time.

Generally the oscillations will form a small trading range after 11:30 AM EST. I have noted a general weakness between 2:00PM and 3:00PM EST. I see many false rallies occur at about 11:00AM PST. These rallies will look like the stock is going through the roof. But they usually go up one or maybe two trading ranges and then fall just as fast to the bottom.

(continued...)

Ken
mtrader.com
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