Friday, May 6, 2011

JOBS,OPEN,PPO day trading analysis

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One day chart of JOBS

The day begins with heavy buying and high volume. this is due to day trader activity. I cannot draw a 30 day, 2 month base line but it once it crosses that line at the top end around 64, it stays there for the rest of the day. 

One important thing is the consolidation phase in day trading. around 60, 62 and then peaks at 64. 

I observed that it is sometimes when the opens high at the opening, but it may come down from there. If the stock crosses the 
2 month average which can be drawn in google finance, then one has to get out of the trade.  If consolidation above it that is the time to buy. Need more study on this topic. 

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5 Day chart of PPO

Opened with 10 percent gain, then heavy buying during the opening hours brought the stock to 18 percent high.  Usually the day traders cover at the day end. 

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5 day chart of OPEN

This is the reverse of the above. Here the stock fell from the 30 MA after phase 3 and entered phase 4. Heavy selling at the day opening. The short cover their position at the end of the day. So the stock goes steep down during mid day due to shorting activity during day trading, then the storts cover the end of the day and the losses cover. 

All these stocks range from 10-20 percent movement. These are the kind of stocks I need to study and day trade if I need to to get around 3-4 percent profit a day. One should not be too greedy. One should get out with 3-4 percent profit and be satisfied. 
And cash out a check. 

Day trading with too much speculative stock in the range of 20-40 percent can be dangerous. But going by the 2 month graph it is still possible but one has to get out if one buy at a wrong point. Or buy during consolidation. I need to more study on this topic. But the rules are the same for the day trading or for longer holding, and going by trend analysis. 

1 comment:

Day Trading Course said...


This observation is very important for day trading. Trading is a medium-term strategy in which positions are held the day trader's currency trading system is usually made up of a number of calculate the PPO, subtract the 26-day exponential moving average. Thanks...