The last concept that I want to highlight about this book is their method to know the future direction of the market. It's based in the following concepts.
Distribution day. A lost of about -0,2% on heavier volume. It is preferable if it closes near the lows of the range trading.
Sell signal. It happens when there is 4/5 distribution days in 20 trading days.
First day rally attempt. Day index closes higher after making new lows. In fact if the index closes lower but in the mid-range of the day with heavy volume can be viewed as accumulation and count as a rally attempt.
Follow-through day (FTD). They call a day in this way when index goes up more than 1,5% on higher volume than the prior day on the fourth through seventh days of a rally attempt off the bottom. Then market is in buy mode and you should look for proper chart formations.
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