Intermarket Analysis
The basic assumption of technical analysis is that prices exhibit repetitive patterns and that the recognition of these patterns can be used to identify trading opportunities. Technical analysis can also include other data, such as volume, open interest, and sentiment measures.
Jack D. Schwager • Unknown Market Wizards: The best traders you've never heard of
Trend Following (Updated Edition): Learn to Make Millions in Up or Down Markets,
amazon.com
He presents evidence that liquidity tends to lead market movements by a window of three to six months. This insight suggests that tracking global liquidity can offer valuable foresight into potential market behavior, enabling investors to make more informed decisions.
Michael Howell • The Dynamics of Global Liquidity and Cycles
Specifically, on a daily basis, a market will, more often than not, close higher than its open following a down close (close-to-close) and vice versa after an up close. (Down close projects a higher open-to-close, up close indicates a lower one).