Has anyone used after-hours prices to trade or derive signals for the day ahead? I'm struggling to make sense of these. For example, a stock can trade up in after-hours trading, but ultimately close down on the prior day. For this reason, I tend to ignore these signals (except if a news event explains the change in price). I wonder what your experience has been.
MasterOfCoin
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Low-volume after-hours orders are a very unreliable indicator of a stocks price action.
Unless there are significant volumes or a corresponding news or regulatory announcement to indicate a trend, then such insignificant sporadic indicators from sparse trading are best ignored. Act on such signals at your peril.
Unless there are significant volumes or a corresponding news or regulatory announcement to indicate a trend, then such insignificant sporadic indicators from sparse trading are best ignored. Act on such signals at your peril.
