I really should do a post on day trading fast moving stocks. But am not 100% sure what I know is still accurate in todays atmosphere. Plus I don't want to pass on the thought I recommend day trading the OTC. But if they just knew the basics, maybe it would help some.
For now all I'll say is the bid/ask stacks are the most important thing to watch day trading, right after time of day, for large reversal points.
If the bid inside has more M&Ms then the ask inside, consensus is down. Inside means the number of M&M at bid or ask. Next the inside size at bid is larger then ask, will imply how long down lasts. This you watch the time & sale s for.
Keeping an eye on the outside bid/ask levels will also support sentiment switching, as it fluxes larger or smaller,below or above best bid/ask.
Knowing how many M&Ms have a misbalance at bid/ask and the size of that misbalance, one can project reversal or buy sell points during the trading day. As for timing rush hour 9:30 to 10:30 usually trends then reverses, Then 10:30 to 11:30 the trend will settle mid price swing for lunch. After lunch expect the same trend as open and reversal into the days close, but at half the price swing size.
Timing will offer 2 trades a day morning and afternoon. And bid/ask stack watching will offer several smaller trades, during morning & afternoon trend or mini flags to play. Time & sale will help with duration/determination as stack size gets closed one sided or in waves.
The above will help understanding sentiment, consensus and duration of trend. There now readers have the basics of day trading a fast moving day trade tsock.
AI
