Large One-Day Gains After Stock Market Corrections
Large one-s in the indexes can give you the feeling that you are missing out. Just remember, the largest s in the usually occur during stock corrections. A 2.9% gain on Oct. 16 put the Nasdaq composite back above its 200- moving average (2). Though it was enticing, it quickly failed.
Follow-through Days Using Swing Trading Strategies
Follow-throughs are a stronger signal than a single one-day gain. That’s where you get a powerful gain on volume heavier than the previous day on day four or later in a rally attempt. It confirms the initial strength of a one-day gain and suggests the stock correction may be over. But they don’t all work.
Let’s watch this article about where to put your money before the market crashes 2017. If you have any questions please ask them in the comment section.