**Profiting from Bar Charts**
The opening price of a daily or a weekly bar usually illustrates theamateurs' view of value.
Research has shown that opening prices very often occur near the highs or lows of daily bars.
Prices tend to recoil later in the day from the extremes set early on by the buying or selling of amateurs.
The actions of professional traders are often reflected in the closing price of daily and weekly bars.
They become especially active near the close, taking profits to avoid holding positions overnight.
In bull markets prices often hit lows on Monday and Tuesday due to profittaking by amateurs and then rally to new highs on Thursday and Friday.
In bear markets prices often make new highs for the week on Monday and Tuesday and new lows then occur on Thursday or Friday.
Expecting your success,
Phil Birchley
PS: Get your free trading eBook Killer Patterns.pdf and free mini course over at...
Wizard Trader -- Trading Education, Giving You The Edge
BTW I'd love it if you use this article on your site/ blog/ ezine/ newsletter -- but please include the link above and keep it active. Thanks!
Tuesday 20 March 2007
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