Friday, May 20, 2011

Day trading Time rules

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This is example of down stock. 


From observation of these graphs some conclusions about day trading stocks that are up or down 5-8 percent at opening half hour. If a stock is going to reach around 14 percent by 9 am pacific time, then it has to move up or down with high volume. 

So the safe way to deal with this situation is to wait till 7.30 am. See if the stock is consolidating on the moving average. 

1. If the stock crosses the Moving average that means the trend is changing. Then one has to get out of the stock

2. For stocks moving down the moving average, NEVER EVER BUY THEM. From these graph it is evident that they do not recover for the rest of the day and one can be locked in a bad position and loss situation. 

3. For stocks moving up the moving average, NEVER EVER SHORT THEM. The graph above shows how when a stock goes up it will not come down for the rest of the day. 

It is only is some rare instances that something unusual can happen but otherwise this is normal behavior. 

Moving averages not shown in these graph from but available when graphed on google.

4. The first One and half hours is when the most action happens for these stocks. From 6.30 am pacific time to 8 am. This is a similar pattern for all the graphs. 

1 comment:

Day Traders said...


The above graphs try to give you detail information about day trading stocks, every second is important for the traders. The trader makes the determination of which direction to be trading the pair based on the direction of the daily chart. Thanks a lot.