COIN MOVES UP OVER 11 POINTS

Coinbase Global, Inc. COIN today experienced a Power Inflow, a significant event for those who follow where smart money goes and value order flow analytics in their trading decisions.

Coinbase (NASDAQ:COIN) stock experienced a Power Inflow event on Monday, signaling the entry of institutional buying activity in the morning session.

What Happened: The crucial event occurred at 10:27 AM EST, indicating a large volume of buying interest at a price of $320.39.

Institutions and "smart money" traders often pay close attention to order flow patterns to gain an edge in their trading decisions.

A signal like the Power Inflow, especially when observed in the morning session, can be interpreted by traders as a bullish event, offering a potential entry point for trades expecting an uptrend in the stock.

Traders following this signal will be closely monitoring the sustainability of the momentum in Coinbase's stock price throughout the day, using the event as a directional indicator.

Power Inflow In Depth: Order flow analysis, also known as transaction or market flow analysis, separates and studies the retail and institutional volume rate of orders, known as flow.

It analyzes the flow of buy and sell orders, considering their size, timing, and other related characteristics and patterns, to gain insights and make informed trading decisions.

This particular indicator is interpreted by active traders as a bullish signal.

The Power Inflow occurs within the first two hours of the market open and usually signals the trend that helps gauge the stock's overall direction, powered by institutional activity in the stock, for the rest of the day.

By incorporating order flow analysis into their trading strategies, market participants can better interpret market conditions, identify trading opportunities, and ultimately improve their trading performance.

However, it's crucial to note that while observing smart money flow can provide valuable insights, it's always critical to incorporate effective risk management strategies to protect capital and mitigate potential losses.

A consistent and effective risk management plan helps traders navigate the market's uncertainties in a more controlled and calculated manner, increasing the likelihood of long-term success.

If you want to stay updated on the latest options trades for COIN, Benzinga Pro gives you real-time options trades alerts.

Market News and Data are brought to you by Benzinga APIs and include firms, like

https://www.tradepulse.net

, which are responsible for parts of the data within this article.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

After Market Close UPDATE: The price at the time of the Power Inflow was $320.39. The returns on the High price ($332.00) and Close price ($331.06) after the Power Inflow were respectively 3.6% and 3.3%. That is why it is important to have a trading plan that includes Profit Targets and Stop Losses that reflect your risk appetite. In this case, the high of the day and close were very close but that is not always the case