Traders Laboratory - View Single Post - 'Markets In Profile': Detailed Book Review
View Single Post
  #42 (permalink)  
Old 05-04-2008, 11:41 AM
Frank Frank is offline
Frank has no status.

 
Join Date: Jan 2008
Posts: 58
Thanks: 0
Thanked 74 Times in 23 Posts
Re: 'Markets In Profile': Detailed Book Review

The core high-level intraday model says that more often than not, the market will choose a direction and then continue that direction until the last hour. But let's quantify this tendency.

Since Thanksgiving, the 110 trading days have seen 70 days (64%) that had this tendency. That is, the high or low for the day was made AFTER 3pm. If we add 'Period L' into it as well (2:30pm or later), it becomes 80/110 -- or 73%.

This is not a forecast of the future -- simply a statement of fact about the last 110 days.

I am still trying to figure out how to actually use this tendency. But the vague idea is to think that on any given day, once the market has chosen a direction --- more often than not, the S&P's will tend to continue in the chosen direction until the final hour.



Attached Images
File Type: png HighLow 110 days ended May 2 2008.png (21.7 KB, 120 views)
File Type: png LP Final HighLow 110 days ended May 2 2008.png (19.5 KB, 120 views)

Reply With Quote