The simple ans is yes.
A more complete answer would be “Yes It should on stocks with sufficient liquidity”
Yup. A technique is just a technique by itself. For the market to move, there needs to be sufficient interest on this counter – Interested buyers who are prepared to buy at a higher price as they felt that the prices are going higher. And interested sellers who are willing to sell to them.
Hence, my rule:
1) If the stock average volume traded is less than 10M, I wouldn’t be too inclined to trade the stock.
2) Price should ideally be more than 500 for sufficient trading range on a daily basis.
Let me show you how Diff works on a few Indonesian stocks for a start in my next few postings. (I will try to be objective as possible, you can always verify the data on your trading charts).
Stay tuned…
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