"Up your average" Something to think about for candles...

If your watching a chart real time... be it connected to a level II platform, or not, and you want to skill up on the entry strategy for the intraday... try and visualize the formation of a candle, and the sequence in which it is formed... (this is for serious charting fanatics). You'll have to go back to the previous day, and look at candles to verify this. You would do this because in order to visualize the nature of trading (buying) off the next day's open you will hopefully break the habit of chasing.

In almost every case... a candle has a body consisting of a top and bottom of the candle body itself... that is the open and the close.... then.... above and below is usually some type of tail... Which, if you think about it.... it doesn't really matter which tail is put in first... just the fact that a tail is put in at all is worth noting for the purpose of this insight.

Assuming you have the trend right (in this case for this post it would be up) We know what the open is... on the open... because it is the first trading price we see... then  we know that a tail will be placed in most cases, be it up or down with a high average of occurrence, so it stands to reason.... speculatively bidding just under the open is the advantage on the open in a lot of cases... ( this does not apply as often in gap ups as gap ups imply run-away prices)... Every little bit helps in avoiding chasing.

Bidding for a price under the open is a risk reducing tactic when the trend has been properly identified as up.

When looking at candles... size is important.... small candles imply low volatility... big  candles imply high volatility.... the rule of thumb is... little candles turn into big candles and big candles turn into little candles... lots of little candles are usually found on a bottom pattern and big candles on a top pattern.... with little candles signaling a change in either case, assuming there is some speculative fundamental to drive the change relative to a high or a low... I'll be re reading this to see if I can make it less confusing, and will likely be back to reproof it, and try and be more articulate in the goal and explanation. Been day dreaming at the keyboard, but, I will say this... once your skill develops in the art of getting the up move right.... you will switch to the practice of buying the end of the day to catch the gap for an advantage in a run up... It is consistent to think that NEXT DAY opens on an uptrend breakout that has not merged into unmanageable volatility will open just above the previous days close... A LOT OF TIMES JUST WITHIN THE TOP TAIL BUT OVER THE PREVIOUS DAYS CLOSE... BIDDING JUST BELOW THE PRICE TODAY AT THE CLOSE OFTEN GETS FILLED DUE TO LOSE HANDS AND ..so anticipating the probability will save you from needless chasing which if you think about it, and your wrong... .actually reduces your risk in almost all cases..... that is at a level of experience though, and new practitioners need to get past a certain amount of experience in watching.... I say watching, because in order to recognize the advantage you are seeing you need to know what you are looking for...

Dave GLTA

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