Open?

Does anyone know the methodology behind why IBD does not track or at least report the "open" on investors.com? Is it considered meaningless as all securities don't start trading at the same time? Billy once reminded me of this.

Just curious as to the why?

[QUOTE=Harry;25379]Does anyone know the methodology behind why IBD does not track or at least report the "open" on investors.com? Is it considered meaningless as all securities don't start trading at the same time? Billy once reminded me of this.

Just curious as to the why?[/QUOTE]

Bill O'Neil began trading before there were charting services. He used to hand draw his own weekly charts. Daily opening prices have no meaning in this context and perhaps weekly open prices don't convey much information either. Bill pays most of his attention to weekly charts still today. Historically when charting services began HLC was a standard. OHLC later became popular.

Opening prices may mean something to a day trader but less to a longer term trader. There are some Candlestick patterns that imply trend changes so once in a while I will open up another charting service to look for these but quite seldom actually.

When you have been trading successfully for more than 50 years without ever looking at open prices I guess it boils down to why would you make your life more complex with additional clutter.

Mike,

Thank you for the informative reply!

If you have time, I also have a MEM question. On Friday you posted "Today with the close in the upper part of the range qualifies as a day-1 rally attempt, the earliest follow-through day is day 4 rally count or next Wednesday. Once in a blue moon we get day-3 follow-through days if all three days make big moves up."

Is "big moves up" a subjective call by Bill O'Neil or is it defined somewhere? I'm assuming both Monday & Tuesday moves were not "big" enough, correct?

I cannot express my gratitude for you taking the time to help educate myself and others.

Harry

[QUOTE=Harry;25390]Mike,

Thank you for the informative reply!

If you have time, I also have a MEM question. On Friday you posted "Today with the close in the upper part of the range qualifies as a day-1 rally attempt, the earliest follow-through day is day 4 rally count or next Wednesday. Once in a blue moon we get day-3 follow-through days if all three days make big moves up."

Is "big moves up" a subjective call by Bill O'Neil or is it defined somewhere? I'm assuming both Monday & Tuesday moves were not "big" enough, correct?

I cannot express my gratitude for you taking the time to help educate myself and others.

Harry[/QUOTE]

Harry
I don't have a definition of 3-day FTD. They are too rare to do a lot of back testing. Something like three days with each day up 1.25% or so closing near the top of the range with at least one of the days in high volume.

I am away from my tools traveling in New Mexico not able to look at charts right now to make any judgement calls on the current market.

Harry; In Trade Like an O'Neil Disciple, in the chapter Dr. K's Market Direction Model, pg 231-232.
"In very rare instances, a follow-through day can occur on the third day of the rally attempt but all 3 days must be on increasing volume such as January 15-17, 1991, on the NASDAQ Composite, or the prior 3 weeks must be relatively tight such as the weeks leading up to the follow-through day on January 5, 1987."

On 4/5 the NASDAQ close was at the top of the range, but 4/8 was on decreased volume. Yesterday volume increased, but was less than volume on 4/5, so the last 3 days would not fulfill this definition.
Today is another story.

Best regards,
Robert

Thank you Robert!

Agree, today looks to be setting up as a FTD.