Trading Techniques  |  JUL 2004

Overnight Trading by Anthony Trongone, Ph.D.

Overnight Trading by Anthony Trongone, Ph.D. Trading that occurs after the regular trading session can dictate future action. Here’s how you take advantage of this information. Many readers wrote to me about my article in the January 2004 STOCKS & COMMODITIES. Since my findings were unsupportive of the earlier writings of some other “authorities,” they were curious as to why such a phenomenon was unfolding. In this article, I’ll begin by discussing possible causes responsible for or contributing to recent unorthodox pricing patterns that appear to contradict traditional expectations of technical analysis. I will then uncover some recent price anomalies that traders can use to their advantage. It is not easy to take an antagonistic position against such a venerable lineup of technicians — especially one that throws cold water, at least temporarily, on the long-held theory that rising prices with rising volume (RPRV) is bullish and rising prices with falling (RPFV) volume is bearish. However, this traditional wisdom came long before the advent of the computer, direct-access trading, or widespread exposure to international trading.

by Anthony Trongone, Ph.D., CFP, CTA