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.
- 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.
- http://www.topstockresearch.com/MostVolatieShare/MostVolatileShareInLastThreeDaysPeriod.html
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