Breaking yesterday high or low prices?

Discussion in 'Technical Analysis' started by crgarcia, Jan 25, 2008.

  1. Is there an analysis or strategy stating if price goes below yesterday' low, it will likely continue to sink by some amount?

    (Viceversa when going above yesterday high).
     
  2. balda

    balda

    S&P key reversal to the down side
    went above previous day high closed below previous low.

    all we need as a gap lower and lower close.

    NASD is even better gap lower will leave a 2 day island top very common formation in a bear market. look at NASD 2001-2002 daily charts.
     
  3. If the low of today is broken, there is a mathematical result that shows that if things continue as in the past, the low of next day is easier to break and the high of current day is harder to break next day. You can make money knowing this. More money if you know why it is the case (but you probably do not need to know).

    I am the author of this mathematical result. It is not published
    because I do not want to publish it.

    Hope it helps, cheers.
     
  4. If the low of today is broken, there is a mathematical result that shows that if things continue as in the past, the low of next day is easier to break and the high of current day is harder to break next day. You can make money knowing this. More money if you know why it is the case (but you probably do not need to know).

    I am the author of this mathematical result. It is not published
    because I do not want to publish it.

    Hope it helps, cheers.
     
  5. How is this different from the trend being your friend ?

    Anek
     
  6. Trend is your friend until he sleeps with your wife! :)
     
  7. Quite true lol
     
  8. Good one!

    The math behind it gives tools that show you the trend is not your friend any more before you find out that it is not your friend using naked-eye facts. In other words, you will
    be able to stop trusting before paying for the trust.
     
  9. What does
    "the low of today is broken" mean?
    Does it mean that tomorrow's low < today's low?
     
  10. balda

    balda

    today market broke yesterday's high and low.
    so mathematically speaking it is easy for market to break to either side?
     
    #10     Jan 25, 2008