Sonntag, 25. November 2007

Finding the unusual moves

Standard distribution of the stock range can give us a clue about the market sentiment. If the range of the current index is above the normal levels we can expect the strong move next day.


Here are standard normal distributions of the indexes.



The image below is showing the unusual moves of the DAX index. As you can see this technique can be a strong confirmation for your other technical analysis tools.

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