ABSTRACT

It is essential to realize the importance of history when planning strategies or placing orders. Any information regarding the stock market is historical; it may provide signals with patterns or trends, actions which might occur or be overridden by other indicators and events. Because market information is historical, it has also been seen by others. Information on the stock market exists in two different forms, although most people only consider one. The market-at-rest is based on closing prices, and the market-in-motion is based on prices moving throughout the day. Most investors only consider the closing statistics in their trading strategy, even though they must place their trades while the market is in motion. The notion that the stock market will predict future trends is a matter of continual debate. Whether placing trades for short- or long-term trading, considering the market in motion can be even more important than merely observing the market at rest.