Morning After Trend Day (MATD)

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Definition of 'Morning After Trend Day (MATD)'

This is, as the name suggests, the type of market that you can expect to see the morning after a trend day.
  • Traders typically expect an oscillating Z-style market on this morning.
  • Morning sessions following trend days can find buyers and sellers battling each other near the previous day's close, with no lasting trend apparent.
  • Trapped longs, trapped shorts, and profit takers are driving the morning session and it is unlikely they will reach consensus that would result in another trend day in the same direction.
Below is an example of a MATD in the E-mini S&P500 on 9 April 2010. Notice how the yellow bars (8 April 2010) show a trend day and then the cyan bars (9 April 2010) show sideways action during the morning session.

Click image for original size
ES on 9 April 2010 showing an example of MATD.


Chart created with the Alternate Day Indicator.

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