Monolithic Power Systems (NASDAQ:MPWR) experienced a significant Power Inflow alert, a key bullish indicator that is closely tracked by traders who value order flow analytics, specifically institutional and retail order flow data.
At 10:05 AM EST on October 31, MPWR triggered a Power Inflow signal at a price of $948.32. MPWR had seen a very steep decrease in the stock price leading up to the Power Inflow alert, dropping by as much as 6% in the opening hour of trading. Following the alert, both the retail and buying interest in MPWR shifted more towards the buy side, leading to a significant rise in the stock price, eventually reaching a closing price of $1,005. This Power Inflow signal is aimed to be a bullish indication of institutional and retail interest, spotlighting where traders may be entering the market for the stock.
Understanding the Power Inflow Signal
The Power Inflow alert is a proprietary signal developed and provided by TradePulse. The alert is issued within the first two hours of the trading day, it highlights when there is a significant shift in order flow, specifically indicating that there's been a strong trend towards buying activity. This suggests a high probability of bullish price movement for the rest of the day, making it a potentially strategic and opportune entry point for active traders.
Order flow analytics analyze real-time buying and selling trends by examining the volume, timing, and order size across both retail and institutional traders. These insights offer a more detailed understanding of price behavior and market sentiment for a stock, allowing the trader or institution to make the most informed decision possible.
MPWR Market Close Performance
At the time of the Power Inflow, MPWR was priced at $948.32. Following the signal:
• Market Close Price: $1,005 (+5.98%)
Today's Power Inflow alert on MPWR is a great example of how real-time order flow analytics can reveal bullish momentum, especially during a period where the stock price is in significant decline. Despite the stock trading lower for most of the day, a trader who bought shares of MPWR shortly after the Power Inflow signal could have realized a substantial intraday gain, demonstrating the effectiveness of TradePulse's Power Inflow signal and the advantage of monitoring order flow data. These strong short-term gains that followed the Power Inflow alert on MPWR highlight the value of order flow analytics in identifying bullish market close activity along with a possible stock price reversal, offering traders a potentially advantageous buying opportunity.
This article is for informational purposes only and does not constitute financial advice, investment recommendations, or a solicitation to buy or sell securities. The analysis is based on stock order flow data, but accuracy is not guaranteed. Investing involves risk, including possible loss of principal, and past performance is not indicative of future results. Please consult a licensed financial advisor before making any investment decisions.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
