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Gold/Mining/Energy : Day trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: Brennan Wilkie who wrote (2965)	4/26/1999 5:24:00 PM
From: keith massey	Respond to of 4467

Brennan Whats gap.. gap up etc...'the stock will gap tomorrow'? A gap up occurs when today's open is higher than yesterday's close. This shows an inbalance of buyers to sellers and is used as a major indicator on volume stocks. On small volume pennies a gap means far less. also how do you calculate resistance? Resistance is a price were a lot of people are going to sell their stock and nobody wants to buy it. You find resistance points by looking at the history of the stock. For example, if every time the stock got to a given price it switch direction and went down than that price would be a resistance point. When the stock gets to that price again the odds are with you that it will switch direction again. Break outs through this resistance level on volume indicate that the stock will probably go higher. Another example...at $5 everyone wanted to buy XYZ. Every time it got to $5 people would buy and it would go higher. On a given day the stock drops right through $5 and goes to $2. You being the smart investors picks the bottom perfect and buys at $2. The stock starts to climb. On major rule is investors always like to break even. When the stock gets back to $5 all the people who bought at $5 will be selling thankfull they are breaking even. The rule is then "once a major support level is broken it becomes a resistance level". You can find these by looking for areas on a chart where a lot of stock traded hands. what firm do you trade with? Action direct is too freaking slow I am presently stuck with Greenline until my account with Scwab goes thought. I also have a Datek account. Best Regards KEITH