Wednesday, April 22, 2009

Catching a Market Transition

If you click on the Market Delta chart for this morning's trade, you'll be able to see how selling pressure (transaction volume at bid) dried up early in the session per the intraday Twitter post. This led buyers to come into the market and first hit the VWAP target (red line on chart), then take out the preopening highs, following the NQ leader. This transitional pattern sets up frequently and on varying time frames.


Ken said...

Excellent Thanks Dr B

Brian said...

It's a small thing but it would be helpful if you mentioned in your posts what time zone you are in on the chart. It seems you get around the country quite a bit, lol

Brett Steenbarger, Ph.D. said...

Hi Brian,

All charts and all Twitter posts are Central time. If you look at the chart, you'll see that the volume picked up at the 8:30 AM bar. That's when ES opens in Chicago.