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Re: Opening Types and Trader Confidence
Yesterday I think was a pretty good example of an open test drive. The market went down about 15 points off the open to search out those pre-market sellers...but found nothing. This was signaling that confidence was not as high as it could be. Then...YM sold off in the afternoon. Was it a little obvious (the selling) knowing the confidence at the opening wasn't as strong as it could be? Sure...I think so. Unlike the second photo I attached, where YM went up just 3 points before heading....about 400 points lower.
So...I think if nothing else, knowing the opening types is good for helping to discern the direction of the afternoon action.
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