Follow-Through


When a market closes strongly in my favor, it has a higher-than-normal
likelihood of following through the next morning. This means that a long
position that closes in the top of its range will likely move higher early the
nest trading day. I believe this occurs because buyers are not filled and this
momentum spills over into the next morning. The same is true for short sales
when the market closes near or at the bottom of its range.

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