Ideas from W.D. Gann

1) The daily move means nothing to the trend!!! Follow the weekly/monthly charts to make the big bucks!
"Another important fact traders overlook is that the more
times a man gets in or out of a market, the more times he
changes his judgment. Therefore, the percentage of his
being wrong increases. In a bull or bear market, there are
often big reverse moves opposite to the main trend, from
which big profits can be made, but a man can not catch them
by jumping in and out every day. He must wait until he
has a real cause and sufficient reasons, based on facts, before
he makes a trade. If he jumps in or out on hope or fear,
he will not only make losses, but he will miss the real opportunity
when it comes. The daily moves generally mean very
little to the main trend of the market."


2) Buy weakness monday/tuesday factor in a bull market
"A market that has been strong during the week or especially
during the latter part of the week and closes strong
on Saturday, is likely to open strong Monday and finish the
advance in the first hour on Monday. Therefore, be very
careful about buying stocks on Monday morning’s strong
opening. Public buying orders which accumulate over Sunday
are all executed Monday morning and as soon as this
demand is supplied professionals start selling and the market
has a reaction in proportion to its condition and position at
the time.
Even if it is a bull market and going higher you will be
able to buy cheaper on Monday afternoon or Tuesday when
the professionals are hammering prices down after the public
buying wave has been satisfied."


3) 2:30 factor
"As a rule, out-of-town buying orders accumulate over
night. If the buying orders are in excess of the selling,
stocks will advance for the first thirty minutes, while the
public’s buying orders are being filled. Then a reaction will
take place. Prices may go lower than they were at the
opening; drift along in an uncertain way until about 2 :30
P.M. when the professional crowd on the floor decide to
even up; then either advance or decline for thirty minutes,
according to whether the floor traders are long or short."

From "Truth of the stock tape"