Trend Day
Last updated
Last updated
Trend Day is the most aggressive type of market day.
On a bullish Trend Day, the open usually marks the day's low, while the close usually marks the day's high, with a few ticks of tolerance in either direction.
On a bearish Trend Day, the open will usually mark the day's high, while the market will close near the session's low.
The market will typically start fast on this type of day, and the farther the price moves away from value, the more participants will enter the market, creating sustained price movement on increased volume.
Initiative buying or selling is the culprit on this market day, as these participants are confident they can move the price to a new area of established value.
Price conviction is strongest during a Trend Day. The market will start strong right out of the gate and will usually maintain a unidirectional stance throughout the day, never calling into question the day's direction or conviction.
This type of day has the highest price range (high price minus low price), which can be quite costly if you are positioned against the market or fail to recognize the pattern early enough to enter the market.
These days only occur a few times a month, but catching these moves can certainly make your month in terms of profits.
Trend Day is usually preceded by a quiet day of market activity, with a small range of movement. Coincidentally, this type of market behavior will also follow a Trend Day.
