Hi GZ; Sometimes words just don't explain things. About those
stalactites, I didn't mean the actual lines, I was talking about
the sequence of vertical lines all having the same top value. Viz:
+ ++ + ++ ++ + + +++ ++ ++++ + + + + +++
+ ++ ++ +++ +++++ +++++++++ +++++ +++ +++++ ++++
++ +++++++ +++ + + + + + + + + + + + + ++ +
+ + + + + +++ + + +++ ++ + + +
+ + + + ++ + +++ + +
+++ + +++ + +++
+ + +
+ +
In other words, long sequences of time where the maximum
prices are repeated, but the minimum prices dance all over.
In the above example, the maximum price shows up 26 times,
while the minimum price only shows twice. Now some of those
26 times are just no trading periods, but you can subtract those
out, in a real graph, and just count the number of arrival times
at the maximum price.
Incidentally, CPQ only shows these forms when they are lightly
trading. When they are heavily traded, the only thing you can
do instead is watch the size.
The effect is that of a price always bouncing off a flat
resistance line above, but bouncing to different depths.
The reverse chart (down to up) convinced me to hang onto
CUBE this past spring for some good gains. I decided
that the big players were on the buy side, and since the
big players can't turn on dimes, I was therefore safe in
owning the stock for a month or two.
-- Carl |
