October 4, '04. A 3-Time Period Day...


Monday: Even on a relatively trendless day, the market can still be seen to be divided into three distinct time periods during the day. The morning opening, the midday period, and the time period that leads up to the close. During these periods it can be said that there is a noticeable change in market behavior. There are some logistic items that help support these changes, but crowd psychology is the key component. The first period usually breaks into trend quickly, often after a head-fake in the wrong direction. The middle period is most often characterized by a slower and at times, meandering tone. The last period can continue on in an acceleration of the day's trend, or suddenly reverse, cancelling the day's trend out altogether. Since each time period is unique in its behavior, different trading techniques are best employed. Take the course Pivots, Patterns and Self recognition from Valhalla Futures at daytradingmethods.com and learn to utilize these trading techniques.