There’s something magical about two days of the week that can make you a ton of money day trading if you identify it.
The pattern is so challenging to assess that the majority of traders have never heard about Mondays and Thursdays. In fact, the only way I was able to observe this pattern was by going over 10 years worth of old data: a nightmare process.
To quantify a pattern like this, you have to gauge the standard divergence from the mean to see if any pattern or anomaly at all emerges. You then need to do this in both bull and bear markets.
The end result of analyzing 10 years worth of statistics reveals a slight pattern on Mondays and Thursdays that you can use to make a huge amount of money day trading.
Excellent Monday Stratagem For Making Huge Profit
If you had to single out just one day to buy, Monday ought to be that day if you are in a bull market.
Not all Mondays offer tremendous buying opportunities, so you ought to be careful when looking to buy on a Monday. Initially, it helps if you are already in a bull market. This is not hard to determine. Next, you need the recent market action, as measured by the one and five-day strength index, to be robust, with a percentage over 50. Third, you want the market to exhibit strength at the close of trading on the prior trading day, commonly a Friday. If the previous day closes on or near the low, chances are the market will remain lower on Monday instead of moving higher. The one-day strength index will grant you a nice reading on how bullish the market was on the prior day. Last, you need a steady-to-higher open to happen on the Monday buying day. A sharply higher or sharply lower open on Monday presents actual problems. With a sharply higher open, the marketplace could spend the rest of the day trading down to more logical levels. With a sharply lower open, the market may go on to sell off the rest of the day. A higher open is always excellent for buyers.
Brilliant Thursday Strategy For Making Big Profit
Thursdays have a propensity to be the weakest day of the week in bull markets. All through bear markets, Thursdays have a propensity to rally as the countertrend day.
The perfect pattern for selling on Thursday is following two or three days of rising prices-the classic 3-day pattern. The best pattern for buying on Thursday is after two or three days of falling prices.