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: chowder who wrote (13324)	6/27/2008 10:07:59 AM
From: chowder	Read Replies (3) of 13449

Re: Selling Pressure ... IMA ... OK, this chart should provide a better visual of what I was trying to explain. When you see areas of price congestion "above" the recent price, you should expect selling pressure to come to market. That selling pressure represents those who are holding losing positions and want to get out as soon as they can break even. I should also note, the next attempt at working through that lower level of overhead supply stands a better chance of succeeding because the selling volume is lower than the last pull back. That indicates we may have seen enough demand to offset that overhead supply on the next run up. Then you worry about the next level unless the company comes out with unexpected great news. In that case, demand should offset overhead supply. Otherwise, you play the roller coaster game (up and down) while existing demand tries to offset overhead supply.

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