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As a long-time reader and
recent subscriber, I wish
to compliment you on
your magazine. I look
forward to receiving it
each month in my quest
to improve my current methods and
learn new ones.
Perhaps you might consider answering this question: With the advent of
after-hours and overseas trading, I am
concerned that current technical analysis techniques that depend on opening
and closing prices will become obsolete
or ineffective. I am having success with
volatility breakouts (based on average
true range) and candlestick patterns,
both of which require opening and closing prices, combined with traditional
technical analysis. A stock may be up
one point today based on yesterday’s
close but down three from overseas
trading. Which will become the true
measure of today’s change?
Thanks again. You don’t have to
change STOCKS & COMMODITIES magazine at all to keep me happy.
RICK PATTON, via E-mail
Most traders will use the open and close
of the highest-volume market as the best
indicator. For a US investor, that might
be overseas! —Editor