Frequently Asked Questions

Dr K Market Direction Model
What intraday volume sources do you use for NASDAQ Composite and S&P 500 indices? What if it is not clear whether volume will be higher than the prior day's volume near the close of the trading da
We use both eSignal volume as well as volume shown at the top of the home page of Nasdaq Composite and S&P 500 volume are shown including % above prior day's volume at that point in time of the trading day. That said, accurate volume figures sometimes lag as the volume tallies continue after the close, especially on a heavily traded day. So on a day when volume is running close to the prior day's volume, the model may change signals only after the close when higher volume is confirmed. One can put in their order after the close or before the next day's open, otherwise one can just buy at the next day's open. Know, however, that for every % higher you are buying after the signal is generated is that much more risk to your trade. Likewise, should the market open slightly lower at the next day's open, you are buying at lower risk.

Published: Aug 31 2011