August 23, '04. Split Openings can split capital...


A lot of costly and frustrating trades can take place in a directionless market. Grant Noble, in his book The Trader's Edge, talks about the Split Opening in the grain pits as one wherein the opening price of the day is within the prior day's closing range. This often suggests that the market is in temporary balance and directionless action will follow. The same can apply to the stock index contracts, with some notable variations. Today's open just touched yesterday's closing range, and narrow action proceeded to follow well into the time of this writing at 3pm ET. The specific variations of this signal best reserved for the stock index contracts are discussed in the training course Pivots, Patterns and Self Recognition. Take the course and learn these and other capital-saving tips from daytradingmethods.com.