Type of day

         Use the Type of Day question to look at days with specific characteristics. These characteristics can be chosen by The Profile Analyzer or they can be user-defined. Click on definitions to see the formulae the computer uses to guess the various types of day. These guesses were input when the database was built by PTT, Inc . However, you are free to change them using the day type dialog in the commodity database editor .

Example:

         A late break up day. (The market makes a strong upward thrust in the last hour of trading.)

Questions from Traders:

         Do late breaks follow through to the next day’s trading? How far does the market usually extend on a late break up?

Setting Up the Search:

Click on the parts of the box below where appears for explanations of features.

Answers:

         The search shown above yielded 32 days when the market had a late break to the upside. By stringing questions together in the Analysis window we can determine percentages for how the market trades on the day following a late break up day.

         In the first question box in the Analysis window we choose <Type of Day is late break up> and also tag “yesterday.” We then select “and” between the first and second question boxes in the Analysis window . Now, in the second question box, we choose "Closing Prices" from our menu choices. In the Closing Prices dialog we set up the question <closing price in period L is above yesterday’s closing price (today)> The results show us that, on the day following a late break up day, the market closes higher 19 times. We can then compare these results to our original test to conclude that the market closes higher over 59% of the time on days following a late break to the upside (i.e., 19/32=59.4%).

         Other searches show that the market trades higher at some point the next day over 84% of the time. You can use the quantitative questions in TPA to determine how far the market trades up the next day. Use the power of TPA and your own creativity to create high percentage trading opportunities!