AAOI tanked hard on Q3 guidance, despite 2Q earnings beat. It seemed like an extreme over-reaction to me, so I thought there might be a chance for a bounce, so I bought just off the bottom. It failed, so I got out flat.
Posted Aug 05, 17 12:03 AMbyderekb1959
Tickers
AAOI
@RobTheTob My chart is from Friday, 08/04. "A few days later" hasn't happened yet :)
@RobTheTob Regarding "wasn't massive", mayby you are thinking of some other stock. AAOI basically erased a month of solid gains https://www.screencast.com/t/CwzjaYX4
@psk2329 From what I have seen, VWAP is much more meaningful as the day goes on. VWAP is calculated from the start of the trading day, thus during the open it's not very useful. But from Mid-day onwards, it is.
@derekb1959 I used to think the same, but it's actually the opposite. In the morning vwap starts at 0, which means the volume weight average is much more accurate and volatile until about noon-1pm then it becomes such a big number/diluted it barely moves. You will notice after noon it starts to flat-line and become less accurate. regardless its acts like a magnet and you play the trend on how it reacts to it.
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