Strictly Buy and Sell Set Ups Message Board

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Strategies & Market Trends : Strictly Buy and Sell Set Ups

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To: hubris33 who wrote (8244)	3/12/2006 5:37:24 PM
From: chowder	Read Replies (4) of 13449

Re: NBR ... Thanks for the kind words. >>> So you would conclude that the inverted hammer formation, piercing of the pivot area, confirmed by 3x volume is a sure sign of the impending trend change? <<< I wouldn't say a sure sign, sometimes blow off volume is a good thing. You have to take it step further. Let's try to understand the psychology behind that price move. When the price exploded to the downside on tremendous volume back on 2/6, it insured that nearly every single person that bought NBR in the previous 6 weeks was now holding a losing trade. That's 6 weeks of bulls expecting price to head higher and here we now have them losing money. The 2/6 chart was a picture of pain! It was a picture that suggested the odds were high that pain would turn into fear and maybe even panic. Fear is a greater motivator than greed. The odds favor fear selling before greed starts buying. NBR needed to get rid of those who felt the pain. stockcharts.com[h,a]daclyiay[d20051112,20060207][pb20!b50][vc60][J70583437,Y]&pref=G dabum

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