Registered: Aug 2007
07-05-12 09:52 PM
I start my day by checking the daily bars from past six months and draw trendlines, want to see where support or resistance will be and transfer those lines to my smaller timeframe charts. Then I do the same for day session only 60 minute charts and 24 hour 60 minute charts. I use all these trendlines to either take profit early, extend targets or not take opposing signals if price is going towards these trendlines for first touch. As far as yesterday 's close in relationship to today's open, the markets have become so worldwide so fast technology, chasing the gap doesn't give the edge it once did back in the 1980's. In recent times, last ten years, I can't find an edge of using yesterdays high/low to high enough degree to make it a part of how I trade. I do take the ten period average daily range and often times will not take signals when price is at extremes of these ranges.
But as far at picking a direction in relationship from yesterday's close or overnite, no edge here for me. I am just not type of a trader that goes for homerun targets, am sure some are and might be successful at it, but testing I have done would require a stop that is what I be using for a long term trades.