Know the Algorithmic Enemy
As I've been discussing lately, the market has a tendency to move in trend in one direction following the open. Yesterday we trended up all day after a flat open and today we are trending up again after the gap down. Last Thursday it was up all day while last Friday we were down all day.
I believe this is a function of algorithmic trading, which tries to exploit poorly-positioned market players who struggle to react each time the action shifts. They are caught by surprise when we have a big up day like yesterday and the programs push the action even more, which creates more chasing and more upside....206 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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