BLESSINGS AND BEST WISHES
Saturday, December 12, 2015
MOST VOLATILE/MOST VOLUME
1. For Intraday traders.
A stock as a result of some important news moves violently either up or down depending on the news impact. An example of positive news on stocks.
Generally first or second day, smart or informed traders enter and take long positions.
Seeing huge movement, novice/uninformed traders enter and make price move further from its fair value.
Price goes up.
Smart traders books profit at this point. Price falls.
Uninformed traders see this as buy on dip opportunity. They buy more. Price moves up.
And this process continues for 2-7 days with high price fluctuation.
Typical trend to note here to take advantage of this price movement.
Volume should reduce with every passing day.
In candle stick, wick should be longer than body.
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