• Free Book
  • Store
    • Books
    • Free First Chapters
    • Free Newsletters
  • Recent Articles

TradingMarkets.com

Quantified Stock Market Trading Strategies & Systems

  • Home
  • New Trading Research
  • Education
    • Articles
      • Connors Research
      • ETFs
      • Options
      • Stocks
      • Volatility
      • Contributors
        • Larry Connors
        • Kevin Haggerty
        • Matt Radtke
    • Trading Lessons
    • Connors Research
    • Glossary
    • Interview Archive
    • Videos
  • Python
  • Quantamentals
    • Quantamentals: The Next Great Forefront of Trading and Investing
    • Quantamentals Resources
  • Courses
  • Store
    • New Book! The Alpha Formula
    • “Buy The Fear, Sell The Greed” – Best Seller!
    • Swing Trading College 2019
    • Trading Books and Guidebooks
    • Street Smarts
    • Online Trading Courses
    • Private Mentoring with Larry Connors
    • Customized Trading Research
    • Amibroker Strategy Add On Modules
You are here: Home / Glossary / Large Moves

Large Moves

Large, one-day moves create a great deal of excitement. When prices rise sharply, you can feel the burst of energy it creates as analysts and financial market journalists excitedly tell us the good news as to why prices rose. And, they usually go further by saying that today’s big move up is likely to lead to a further rise in prices.

When prices drop significantly, the opposite is true. Bad economic news, poor earnings and negative outlooks all become part of the nightly equation as to why prices dropped. And, this negative psychology many times tends to them manifest itself in justifying why the outlook for the stock market is poor.

However, based on our research, it appears that large market drops are followed by immediate snap back moves. This is especially true during the times the S&P 500 has traded above its 200-day moving average. After the panic has set in and the selling is finished, the market many times has quickly recovered and these recoveries are often strong.

The above is from How Markets Really Work: A Quantitative Guide to Stock Market Behavior by Larry Connors, founder and chairman of TradingMarkets, home of PowerRatings, and Connors Group, developers of The Machine.

To learn more about PowerRatings, click here. For The Machine, click here. And to get your copy of the new updated edition of How Markets Really Work, click the link below.

Related Articles:

  • The Truth about Large Moves & 3 PowerRatings Stocks
  • How Markets Really Work: Quantitative Guide to Stock Market Behavior (Bloomberg Financial)

Buy The Fear, Sell The Greed

Buy The Fear, Sell The Greed

Swing Trading College

Company Info

The Connors Group, Inc.
185 Hudson St., Suite 2500
Jersey City, NJ 07311
www.cg3.com

About Us

About
Careers
Contact Us
Link To Us

Company Resources

Help
Privacy Policy
Return Policy
Terms & Conditions

Properties

TradingMarkets
Connors Research

Connect with TradingMarkets

Contact

info@cg3.com
973-494-7311 ext. 628

Free Book

Short Term Trading Strategies That Work

© Copyright 2020 The Connors Group, Inc.

Copyright © 2022 · News Pro Theme on Genesis Framework · WordPress · Log in