Basic Principle: If a stock moves quickly in either direction accompanied by a huge surge in volume then all trades placed in that stock should be made on the side of the initial move.
Examples:
MON (11/9/09)
TIVO (3/4/10) (5/14/10)
V (6/21/10)
GS (4/16/10) (7/15/10)
BP (6/9/10)
2 Comments on “Intraday Trading Principle”
Yo, it’s called momentum.
And price follows momentum.
Cheers,
Markus
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