salmanyom Posted December 30, 2011 Report Share Posted December 30, 2011 The question that I have been thinking of for almost now three years is this: Can we know in advance before next trading day how will the price candle for next trading day look like? Will it be an up candle or down candle? The range of the bar will a narrow range or a wide spread bar? Where the close will be? at the bottom near the low or at the top near the high? Can you find someone over the internet that can answer these questions with high probability of being correct each day, say 70% of all times? I have searched many education sites but I've found nothing. Perhaps you can help me guys in this if you know any method or system or basic knowledge stuff that will guide me in forecasting next day action. The reason why I have asked this question is that smart money although I don’t like to call them smart (they are just normal people like retailers like us but the difference is they have huge funds enabling them to control markets) knows in advance where the price will be heading next day of trading. I guess someone will argue with me and will say markets cannot be controlled by single big guy or a group of guys; I will not shed lights into this controversial topic right now. But in short, this can be proved from practical life examples that we all see every day. Just have a look at the following enlightening thread and you will discover why big guys can predict where the market will be heading to. http://indo-investasi.com/showthread.php/9491-Power-levels-trading?highlight=power+level I read this thread twice and made statistical research for this week (because that’s all information about option settlements that I’ve got until now) to discover the relationship between open interest and volume of options and price action for the next trading day. Have a look at the picture below and let me hear your thinking and what do you see. http://farm8.staticflickr.com/7160/6598988927_a7aa32da9a_b.jpg Please note that Above & Below headings are meant to be above & below of the previous day close price. If you concentrate on the statistical results you will notice certain pattern that needs to be subject to further testing next week. Let’s wait for today’s action to see what will happen to the daily candle for the last trading day of year 2011. Quote Link to comment Share on other sites More sharing options...
salmanyom Posted December 30, 2011 Author Report Share Posted December 30, 2011 Sorry, the previous picture is totally unclear. Try this picture: http://farm8.staticflickr.com/7033/6599217261_b111c23269_b.jpg Quote Link to comment Share on other sites More sharing options...
lerxst Posted December 30, 2011 Report Share Posted December 30, 2011 Thanks for the interesting thread, can u tell us where to find the information that you pasted on the chart above? Quote Link to comment Share on other sites More sharing options...
salmanyom Posted December 30, 2011 Author Report Share Posted December 30, 2011 Thanks for the interesting thread, can u tell us where to find the information that you pasted on the chart above? If you mean the figures and charts, these are the results for each trading day of this week. If you mean how I got the information, all can be found in the power level thread which is really informative thread. Quote Link to comment Share on other sites More sharing options...
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