Wednesday, November 18, 2009
Identifying Range Trade
The tight value area (right histogram), relatively flat VWAP (red line), and mix of volume transacted at offer vs. bid (bottom histogram), and reduced overall volume all are useful tells for a range market. Another important tell: mixed strength/weakness among sectors. For most of the day today, the number of stocks in my basket trading up from their opening prices has been close to the number that have been down from their opens.
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