The market found support at yesterday's Point of Control. The market was too bullish to trade past this point. The market did, however, stay in a very narrrow range as expected.
In the afternoon session, we did get a bearish $TICK divergence as the market was testing the overnight high. Again, this traded the market back down to the 0930 ET open.
Charles
Hi Charles,
ReplyDeleteHow do you use the VWAP in your trading decisions?
Thanks,
John Blythe
Hi John,
ReplyDeleteEverytime that you comment, I almost call you Joe. I use to work with a Joe Blythe in Houston.
I have found that when the market overextends itself either to the up side or down side, that the market will correct back to the VWAP Line. If you get a $TICK divergence and want to fade the market, the VWAP Line sometimes can be used as a target for the correction. What happens after that depends on how bullish or bearish the market is at that time. Sometimes the VWAP Line will act as support or resistance.
Charles
Hi Charles,
ReplyDeleteJoe may a distant relative, as Blythe is not a common name.
Did you know that Bill Clinton's birth-name is Blythe? (William Jefferson Blythe)
I'll study the VWAP as you suggest. I like to trade overextensions so VWAP may be helpful there.
Thanks,
Joe (oops I mean John)