In looking at your chart of OIH, it confirms the negative money flows you speak of. All this means, up to this point, and that could change in the coming days, is that there is a lack of buying. We aren't seeing any selling to speak of.
Since this recent formation over the past 4 or 5 weeks is coming after a nice Stage 2 uptrend, we are currently in a Stage 3 consolidation phase.
From here we can either go into another Stage 2 uptrend, or we can experience a Stage 4 down trend.
I wait and see which way price moves above the high of the 5 week formation or below the low of the 5 week formation before doing anything. As long as price stays in this recent price consolidation range I'll sit tight.
When you have a strong upward price movement, it is bullish when price consolidates sideways, "above the 10 week moving average," while selling volume remains below average. We are seeing this currently.
Normally when we guess at the price move, our positions are smaller. So, even if we are correct, we don't get the full impact of the price move. When I wait for price to break, I jump in with a full position, and sometimes an overweight position. Therefore the impact to the portfolio is greater even though the percentage is smaller because I didn't catch the exact top or bottom.
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