I'm no expert day trader, nor do I have much/any experience day trading; however, I have been watching the daily price action in LDK Solar, symbol LDK (I sound like the Holiday Inn Express commercial). First off, check out the huge surge in volume the stock has seen in the last 2 weeks.
Like I said, I've been watching the daily price movements in the stock - and I've seen a lot of good opportunities for day trades. Today, however, I noticed something different. The volume dried up. The 1-minute candle chart was no longer revealing these day trade opportunities due to the lack of volume. If you look at the 1 minute candle chart below you'll see what I mean. In the middle of the day volume was very low, and the candles look like scrambled mess. In the afternoon, however, volume picked back up and the candles began to look organized. Organized enough to give good signals for trade entry/exit.
The moral of the story: One day a stock may have high volume/liquidity and be a great candidate for day trades. The next day that same stock might see decreased volume and you might as well be trading it blindfolded.
Like I said, I've been watching the daily price movements in the stock - and I've seen a lot of good opportunities for day trades. Today, however, I noticed something different. The volume dried up. The 1-minute candle chart was no longer revealing these day trade opportunities due to the lack of volume. If you look at the 1 minute candle chart below you'll see what I mean. In the middle of the day volume was very low, and the candles look like scrambled mess. In the afternoon, however, volume picked back up and the candles began to look organized. Organized enough to give good signals for trade entry/exit.
The moral of the story: One day a stock may have high volume/liquidity and be a great candidate for day trades. The next day that same stock might see decreased volume and you might as well be trading it blindfolded.
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