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General Tips for Intraday Stock Market

General Tips for Intraday Stock Market

As investors, you may often consider the stock market on the basis of each day, each week or each month. When a stock is at the position of the attractive price, you would be intended to buy it. However, you should be aware that on any given day, the market activity would cause a stock in fluctuation by several percentage points. Thus, even as the long-term investor, you could also follow some tips for intraday stock market so as to get the benefit from a good price of certain stock.

1. To know about the NYSE “Tick”.

The New York Stock Exchange (NYSE) is now seen as the largest single stock exchange all over the world. Although there is a large portion of the American stock traded in the market besides the NYSE, its behavior is often regarded as a barometer of the stock market as a whole. The “Tick” is kind of the intraday indicator which is applied in the analysis of trading behavior on the NYSE. On the platforms of most brokerage, the Tick is updated every six seconds. Its principle is quite simple in the way that the Tick level at any point in time is the all the stocks whose price are increasing at that moment, minus those with stocks whose price are decreasing. A positive Tick indicates that most NYSE stocks’ price is increased over the last few seconds. However there do exist some common extremes in the figures to be measured, thus the interpretation of the Tick could be somehow complicated. But the method of the Tick as the basic and popular means is used to wait for a pullback in the stock prices when the Tick get to its extremely high reading of 1,000 or more. When a deep and sudden downturn indicated in the Tick, it would mean that prices would rise likely in the following few minutes.

2. To be aware about the NYSE “Trin”.

The indicator of “Trin” is also used in comparison of the market performance both positively and negatively in the NYSE. However, instead of focusing only on price action, the Trin would take volume into its account for reading. Volume is measured to see how many shares are trading in the stock market. If the number of both positive and negative stocks is equal on that day, it could indicate the neutral sentiment in the market. However, when there are more negative shares involved in the market, it means that you would see the bearish trading behavior in reality, or expected declines in the stock market. Therefore we could say that the Trin is inversely proportional to the whole market sentiment. If it is going up, the trading behavior on the NYSE is would be negative in most cases. When the Trin is decreasing, it is better to purchase a stock, as intraday prices maybe goes up.

3. To make sure about the value areas.

In the stock market, the concept of “value” is seen as a basis of the main goal of any auction activity. If a traded instrument has something to do “in value,” it should have established some price points nearby between which most traders could be engaged in such instrument. Price usually moves up and down between these points until a something catalyzing makes a major move “out of value,” at this moment, the action is fast and liquidity is thin. Finally, this sudden change in price would create a totally new “value area”, where the trading would be once again balanced. Value areas are often set up daily and charting software could offer some help in this regard. When the stock market starts outside the value area of previous day, watching closely how prices would respond to the prior day’s value could help get possible outcome of that day. If opening is above value and prices go down to the prior value, they will would be either rejected or accepted. If the stock market is unable to penetrate the value of the prior day, it is more likely to reverse and rise for the whole the day.

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