I am also confused by the wording although the book is very nice.
Since we are taking as a reference the close of the previous trading day and the open of the following trading day wouldn't be easier to change 'current price' in the sentence to 'opening price' for explaining the concept?
I'm not stating the right interpretation, I'm just asking for clarification since I myself am confused.
My understanding is...
If the - opening price - of the stock is higher than the previous day close (for Stocks in Play that gapped up), and - right after the open - the price drops through the previous day close the market is moving from a Green day to a Red day (meaning that the percentage that the price has changed will now be negative, which will be shown as red in most of the Exchanges and platforms). This is a Green-to-Red move."
Conversely, if the - opening price - of the stock is lower than the previous day close (for Stocks in Play that gapped down), and - right after the open - the price break through the previous day close the market is moving from a Red day to a Green day (meaning that the percentage that the price has changed will now be positive, which will be shown as green in most of the Exchanges and platform). This is a Red-to-Green move."
Would the above interpretation be correct?
Thank you BBT community for any help on this
