Forex Stock Exchange Forum
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Forex Stock Exchange Forum

Forum About Trading on Forex,Stock,Binary Options, CryptoCurrency and NFTs

Cyborg Pro

Hulk trading robot

Predator trading robot

You are not connected. Please login or register

Forex Stock Exchange Forum  » Forex and Stock Trading English Forum » Forex School » ABCD Trading

ABCD Trading

Go down  Message [Page 1 of 1]

1attention ABCD Trading Mon Jul 25, 2016 9:23 pm



The market open can be volatile and erratic. Many traders recommend staying away from trading around the market open. The open can, however, provide powerful moves and possible trade opportunities with favorable risk-versus-reward ratios. While many markets are now open nearly 24×7 during the trading week, the day session open is when the larger market players may tip their hand.The open may also provide clues about the day’s market direction.

For example:
Stock ABC closed yesterday at $40 per share. The stock is set to open the following day’s session at $40.50 per share. If the stock opens at $40.50 and begins to push higher, there may be underlying strength and the price may continue to rise.

If the stock opens at $40.50 and immediately begins to trade below the open price, the stock may have some underlying weakness and may look to fill the gap left from yesterday’s close. If a market is trading above its opening price, it may pay to look for long trades. If a market is trading below its opening price, it may pay to look for shorts.

The market open and where price is in relation to it can potentially provide traders with clues as to sentiment and market direction. Using the open, one may also be able to look for long or short trades with favorable risk/reward ratios. While the open can be volatile and erratic, it may also provide some of the best trade set-ups for the day.

[You must be registered and logged in to see this link.]

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum