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How to spot a SUPERBUY signal - ICE PDF Print E-mail
Written by Edward Chen   
Monday, 01 October 2007

A trait that allows one of the highest probabilities of success in going long in an equity trade is marked by a full-gap up and a minimum of 15 times or more in its average daily volume. An equity with this trait is known to produce a net bullish movement within several months.

ICE (Intercontinental Exchange) gave an extremely bullish signal five days ago when it experienced a full-gap up of approximately 19 to 20 times its regular trading volume. A gap up with that kind of volume is normally followed through by significant percentage gains for as long as one quarter or so. This stock has extremely high volatility and its options pricing is definitely not for amateur traders.

Last Updated ( Tuesday, 02 October 2007 )
 
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