Hello reader !
it has been realized, on various stock market technical system, they start with an error opening which doesn’t relevant to the real trading system.
like shanghai, nikkei, kospi, CAC, DAX & NIFTY are markets where pre-opening session ruins the sentiments early sentiments of traders. let me explain what is a real opening is…..
# when markets open, it opens at last traded price which occurred on previous trading session closing level & on next opening session they open for a sec on previous closing price. according to this system the market open at exact previous closed level and then start move drastic on either sentimental side. example is DOW, S&P-500 & FTSE exchanges run on this system.
# in pre-opening session, speculator can put fictitious price at any incomparable level than last closed price as real trade doesn’t take place during this pre-fixed time, hence the market opens on opposite to exact sentiment level. it shows the irrelevant before the real trade taken place.
# this system show a error candle on daily chart as it has no relation to the real trade, hence the chart might show the false candle at EOD.
I have realize the recently NIFTY indices started this pre-opening session, that it started opening at any irrelevant price level and sometime its opposite to current sentiment. ref to daily chart candle of 19-11-2010 & 22-11-2010.
my opinion is, trades takes place at last closed level for a while then takes its moves towards the way trading sentiments is. this is true and real trading system. sometime this pre-opening session is too horrible for small traders when market show huge false gap up/down opening. it should stop in the interest of traders & market regulator authorities should realize the sentiment of real time trading not speculators sentiments. That’s all !
awaiting any valuable comments.
Thanks !
Cj Bhargav
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