Monday, July 06, 2009
Establishing Reference Ranges Early in the Market Session
Note how we're building value in the 885 area of the ES contract just prior to the market open. We can view such a value area as a pre-opening range to gauge early buying and selling in stocks and determine morning market direction. A trending move should reject this range in early trade and never look back; a range market will tend to oscillate around this range. Finding such early reference periods can be highly useful for intraday traders.
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