There is something astonishing about two days of the week that can make you a lot of capital day trading provided you know about it.
The model is so hard to quantify that most traders have never heard about Mondays and Thursdays. In actuality, the only way I was able to spot this pattern was by going over 10 years worth of old data.
To quantify a pattern like this, you have to calculate the standard divergence from the norm to observe if any pattern or anomaly whatsoever emerges. You then need to do this in both bull and bear markets.
The outcome of analyzing 10 years worth of statistics reveals a slight pattern on Mondays and Thursdays that you can bring into play to make a huge amount of money day trading.
Superb Monday Strategy For Making Huge Profit
If you had to single out just one day to buy, Monday should be that day if you are in a bull market.
Not all Mondays present brilliant buying opportunities, so you should be vigilant 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 want the recent market action, as measured by the one- and five-day strength index, to be great, with a percentage over 50. Third, you want the market to display strength at the close of trading on the prior trading day, typically a Friday. If the preceding day closes on or near the low, chances are the market will stay lower on Monday instead of going higher. The one-day strength index will grant you a excellent reading on how bullish the market was on the preceding day. Finally, you need a steady-to-higher open to appear on the Monday buying day. A sharply higher or sharply lower open on Monday presents real problems. With a sharply higher open, the market might spend the rest of the day trading down to more levelheaded levels. With a sharply lower open, the market may go on to sell off the rest of the day. A higher open is always fine for buyers.
Tremendous Thursday Plan For Making Sizeable Profit
Thursdays have a propensity to be the weakest day of the week in bull markets. For the duration of bear markets, Thursdays have a tendency to rally as the countertrend day.
The perfect pattern for selling on Thursday is subsequent two or three days of rising prices-the classic 3-day pattern. The perfect pattern for buying on Thursday is following two or three days of falling prices.
I think you enjoyed this piece on day trading and timing the stock market by way of days of the week. The majority of traders do not know how to correctly use the MACD. To learn more go to how to use MACD and for additional useful stock trading secrets visit how to make money in the stock market