Analyzing Price Action In The S&P 500 by Adel Weng, PhD
What will the market do the next day? Short-term traders look for some hints that suggest which way prices will move. Here’s one approach you can use to help determine what the next trading day’s bias will be.
It is widely believed that price movements in the stock market, over time, tend to be repetitive. The constant daily actions of buying and selling by market participants, whether by humans or algorithms, can be manifested in price patterns. Short-term directional traders who actively trade the emini index futures contracts are always analyzing these end-of-day (EOD) price patterns for any clues or hints, trying to determine whether the market will be up or down the next day. Any insights on whether there is an upward or downward bias in the close and/or in the direction of its intraday price range can provide the trader with profitable opportunities to go long or short along the market bias and exit the trade on the same day...