How to tell what price a stock is going to open at
- Thread starter Sky123987
- Start date
Don Bright has a method centered around opening price relative to theoretical price determined from weight in S and P.
Send him an email. He teachs a "boot camp" that may cover some of that.
It works like this basically. If SP opens flat but SP stock opens up higher and its opens up high enough then you fade it.
I could be wrong on specifics but I think I have the general idea.
Trade Ideas is a stock scanner that actually has a 'Bright scan" in it which is an open x std dev from close.
John
fwiw
I sometimes use something similar but not nearly as sophisticated - for a high probability set up
1.) identify support and resistance (aka demand and supply)
2.) opening price gaps into these areas â fade it
The other thing I thought of on the drive home â use a 1 minute chart to identify the opening range and trade it
OP - Neither of my responses addresses your original questions, but they might help you out after the opening
Take Care
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Yes sky50-87.
If you ever see stocks heading towards the sky again [a bull market,LOL] ;
Strong earnings in one stock/ strong sector, frequently over rules futures, concerning stocks in that whole sector..................................
Post/premarket gives hints there also.
Here is the calculation
Confining remarks to NYSE, the open is, in theory, the ........one.......... price point that cleans out the MOST open orders.
In reality it's in accordance with the specialist's inventory posture and agenda. A posture is what he has, an agenda, what he's going to do. He, the entity most married to the equity, either wants aquire or shed.
Gaps obviously create fast clean price movement FOR the specilaist, but not the outsider. These movements are often used with a news alibit (whether valid or fluff). IF you're holding, a gap UP can be considered a gift.
Gaps downs have more credence IF they remain above the 3 day midpoint.
Predictability? LOL.
About the best indication is a strong close suggests a strong open. Whether it holds is only clear in hindsight.
Statisitics indicate the open is THEE high or low for the day 17 to 23% of the time. Hence it's better to wait for an opening range to establish as reference points.
Index opens can be deceptive due to delayed opens of components as well as large stocks skewing it.
Lastly, the opening hour is refered to as amateur hour for a reason.
In reality it's in accordance with the specialist's inventory posture and agenda. A posture is what he has, an agenda, what he's going to do. He, the entity most married to the equity, either wants aquire or shed.
Gaps obviously create fast clean price movement FOR the specilaist, but not the outsider. These movements are often used with a news alibit (whether valid or fluff). IF you're holding, a gap UP can be considered a gift.
Gaps downs have more credence IF they remain above the 3 day midpoint.
Predictability? LOL.
About the best indication is a strong close suggests a strong open. Whether it holds is only clear in hindsight.
Statisitics indicate the open is THEE high or low for the day 17 to 23% of the time. Hence it's better to wait for an opening range to establish as reference points.
Index opens can be deceptive due to delayed opens of components as well as large stocks skewing it.
Lastly, the opening hour is refered to as amateur hour for a reason.
Knowing where tomorrow opens is much harder to figure out than knowing which way the market will be headed tomorrow.
Let's say you found this stock among thousands that have the characteristics of consolidating in week to week ranges. Vaguely it means the stock moves up and down predictably because the stock has shown it has past ranges in which the stock moves up and down predictably.
Of course nothing consolidates with this absolute accuracy but I think this strategy does correlate mildly with the question you asked.
Let's say you found this stock among thousands that have the characteristics of consolidating in week to week ranges. Vaguely it means the stock moves up and down predictably because the stock has shown it has past ranges in which the stock moves up and down predictably.
Of course nothing consolidates with this absolute accuracy but I think this strategy does correlate mildly with the question you asked.