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Beginning of Day volume

QuestionsCategory: QuestionsBeginning of Day volume
ravi bala asked 2 years ago
Hi Pat,  There are a few things I struggle with in trading. But, I am noticing that I am not getting the volume surges correct. Many times I see you showing the surges that occur at the beginning of the day on the ten minute chart. Don’t all stocks have this surge at the beginning of the day? Wouldn’t it be better to wait at least an hour after all that activity settles. For instance, I bought cvx based on the above average volume at the beginning of the day when it broke its tops, but got stopped at break even. ARLP-I gave a little bit of room and got stopped out a few points below the pivot. MRK was tight as well. My frustration is not with you or the system or anybody. You are a fantastic teacher! I just seem to be picking the ones that reverse not and continue.     
2 Answers
Avatar photoOwen Staff answered 2 years ago

Hi Ravi,
Pat made this video for you...
https://youtu.be/SGTxdNrTNuE

ravi bala answered 2 years ago
Video was perfect! Thanks Pat. The explanation on volume surges was crystal clear. I can now go back and check various trades. I do appreciate the XOM example of loose base.
Lastly, I was under the impression we did not want price do come back into the base at all in the ARLP example. Hence, the really tight stop underneath (10 cents).