Timing Solutions for Swing Traders: A Novel Approach to Successful Trading Using Technical Analysis and Financial Astrology

HIGH

The high is the highest price at which a stock is traded in a day or in a specific period. This is the highest point of the trading period at which buyers are willing to buy. It is also the highest point of the trading period at which the supply has overpowered the demand; that is, the sellers have gained control of the market. If the high of the day is at or near the opening of the day, then the sellers have been the dominant force, overwhelming the buyers. If the high of the day is at or near the close and the open was at or near the low of the day, then the buyers have been in control for that day. Previous highs often become a stumbling block to advances. When prices reach these previous highs, analysts should be on the lookout to see if the supply is trying to overpower the demand at these levels again.

One particular area where the market is most susceptible to a sudden reversal is immediately after the price has traded up to a new high or down to a new low. At these levels, we would expect new buying or selling to enter the market and it should generally cause the market to continue moving in the same direction. If, however, the market behaves otherwise and does not conform to expectation, then something is amiss, because the price action is not behaving as would normally be expected.

Price cannot continue to go up if there is no new buying and the price cannot continue to go down if there is no new selling. Aggressive traders may want to act immediately on seeing a ...