Tuesday, October 13, 2009

3 types of traders in evaluating the strength and duration of a market move

Long term trader:

Will only be concerned with correction of lows that hold above long term prior lows, such as previous year lows, previous quarter low, or the previous month low

Short term trader:

Will pay close attention to previous week low or high to watch for violation

Aggressive day trader

Will watch each day high and low but usually take the past three days range as important.

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