Price DROP: Close-to-Open

When I bought some stock at the Open and that turned out to be the Low for the day, I figured I should investigate how often that happens, and what additional drops might occur throughout the day and ...

>The spreadsheet, please?

  • I download 10 years worth of price data
  • Identify the days where the price drops from previousClose (that'd be yesterday's Close) to Open (that's today's Open).
  • See what additional drop occurs, to the Low (from today's Open to today's Low).
  • Count the number of these additional drops in each interval ('cause nico found I don't count good).
  • Stick all that info in a gaggle of charts.

Click on the picture to download the spreadsheet.

See the red rectangles?
It says that, for GE stock, if it opens down (about) 1.0%, then it will drop another 1.3% (on average) and that's an average over 33 occurrences. **

>It will drop? Don't you mean it has, in the past 10 years?
But the future is a replica of the past ... isn't it?

Here's a few more:

** I've changed the spreadsheet so it shows percentages:

Price RISE: Close-to-Open

It occurs to me that the asymmetry in that spreadsheet is unsettling so ...

You know, looking only at days when the price decreases and ignoring days where it increases, so I ...

>You change the spreadsheet, right?
Stop interrupting me!
Yes, I changed the spreadsheet so you can see both. Just click on which you want.
For example:

>That's it?
That's it.

>But will that scheme work? I mean, can you make any money?
Hmmm ... good question.

World's Best Buy & Sell Ritual

Try this to see if'n y'all do better than Buy & Hold::

Click on the picture to download the spreadsheet.

>Hey! It works!!
Try changing the Down and Up percentages in cells N3 and O3 ... then come back and say that again.