Price by Volume--check out this pretty cool feature on the JNPR chart
stockcharts.com[m,a]daclyymy[pb50!b200!i][vc60][iUb14!La12,26,9]
If you look at the left x axis of the JNPR chart it shows volume by price, and in this case since May, the
greatest amount of volume of buying and selling has been between 22.5 and 27.50 or so.
That's important as it shows a support and resistance in a different manner. The idea is that if the greatest
number of people have bought at say 25.00 and the stock has moved below that level they are underwater and
many will be inclined to sell when they get back towards breakeven.
Conversely if the stock price is above the greatest concentration of volume activity the buyers at say 55 in the
case of THC
stockcharts.com[m,a]daclyymy[pb50!b200!i][vc60][iUb14!La12,26,9]
The buyers like the stock since it's gone higher., They made money the last time the stock was in that area, and
so they are inclined to buy more if it comes back down towards the volume concentration area. Also all those that
were thinking of buying it and did not say.... "here's my second chance"
Now when a stock chart breaks through that buying concentration in either direction that gives you an
additional perspective of strength and weakness of the holders. And remember these holders don't need to
have EVER looked at a price chart. They still know where they bought the stock and if they are up or down on it.
And obviously the buying and selling concentrations change depending upon which time frame you use.
looking at almost 1 year on THC
stockcharts.com[m,a]daclyymy[d20000101,20010101][pb50!b200!i][vc60][iUb14!La12,26,9]
we can see that if THC falls below 37.5 -36, then their is not much dollar volume until the stock falls to the 25-27.
Just another club in the golfbag.
and Terry, you are certainly right about the bloodbath all along the yield curve.
Message 16666443
John |
