Learn how to trade EOD / FOD Professional StrategyEOD /FOD is an acronym for End of Day buy or sell short entry that holds overnight and the First of Day sell the ETF or stock at Market Open. This is a strategy for experienced to Elite aka Semi-Professional Traders. Beginners need to hone skills and practice in a simulator.
Professional Traders use this strategy all the time. They rarely intraday trade aka "day trading" unless they are Sell Side Institution floor traders who do intraday trading all daylong.
EOD /FOD is a very simple, easy to learn strategy for when Buy Side Giant Dark Pools have accumulated OR have Supported the Market and the Dark Pools foot print of a rectangle that is narrow with consistent highs and lows.
TWAP Dark Pool orders trigger at a low price or lower and usually move price minimally. When in Support the Market mode. The run up is a long white candle.
TWAPs are automated Time Weighted At Average Price. These orders ping at a specific time and buy in accumulation mode. If the stock price suddenly moves up beyond the high range of the TWAP, then the orders pause or halt.
Then pro traders do nudges and runs are instigated by either Gap Ups by HFTs, OR smaller funds VWAP ORDERS, or MEME's or other large groups of retail traders all trading and entering orders in sync or as close to sync as possible to create a flood of small lots that do move price upward OR downward rapidly.
Using the EOD /FOD requires understanding of how the Dark Pools, Pro Traders and other groups react to price and what, where and when orders are automated.
When ever you see a platform trend pattern such as we have on the QQQ yesterday at close and early this morning, then the entry would have been in the last 5 minutes of yesterday's market.
