Overnight Trading by Anthony Trongone, Ph.D.
Trading that occurs after the regular trading
session can dictate future action. Here’s how you
take advantage of this information.
Many readers wrote to me about
my article in the January 2004
STOCKS & COMMODITIES. Since
my findings were unsupportive
of the earlier writings of some other “authorities,” they were curious as to why
such a phenomenon was unfolding. In this article,
I’ll begin by discussing possible causes
responsible for or contributing to recent unorthodox
pricing patterns that appear to contradict
traditional expectations of technical analysis. I
will then uncover some recent price anomalies
that traders can use to their advantage.
It is not easy to take an antagonistic position
against such a venerable lineup of technicians —
especially one that throws cold water, at least temporarily,
on the long-held theory that rising prices with
rising volume (RPRV) is bullish and rising prices with
falling (RPFV) volume is bearish. However, this
traditional wisdom came long before the advent of
the computer, direct-access trading, or widespread
exposure to international trading.