Tuesday, April 28, 2009
Using the Overnight Range as a Reference Point
Early this morning, I illustrated the drying up of selling and then the creation of resistance when sellers began meeting the buying interest before the open. Here we can see the upside breakout from that premarket range, as very strong volume came into the market on favorable economic news, lifting offers. It's a nice illustration of how the overnight range acts as an effective reference point for intraday traders.
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