Is this a significant point in time for the markets? Yest. we had a breakthrough of the lows for the day at 3pm.
What happens at 3pm?
- Thread starter EliteTraderNYC
- Start date
The Importance Of The Close
There is an old saying that the âamateurs open the market, and the professionals close itâ. This means that most amateurs are rushing in their orders at the opening bell, and most professionals are placing their orders in the last hour of trade. And that makes the closing price extremely important. If a stock travels down during the day, but in the last hour of trade comes back up to its highs, what could we assume? That professional players (or players with large amounts of money) are buying the stock and raising the price. Likewise, if a stock travels down but stays down until the close, we could assume that there are either no professional players buying, or there are professional players selling.
http://www.asxmarketwatch.com/2009/08/amateurs-open-professionals-close-the-market
Nice thanks im going to test this hypothesis and see if theres any predictive value.
This is why you often see mean reversion intraday on gaps at the open