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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: bazan who wrote (37254)	10/6/2000 3:51:41 AM
From: Doug R	Respond to of 79382

Bazan, XCED: From 9/18 through 10/4 there was an obvious expansion of volume as the decline in price has decelerated and is now quite excessive in relation to a January high of $48. An initial, very short term, higher low may have been seen on 10/3. For the next two days XCED's trading range has now become very tight. It's a triangle at a possible bottom with a high volume lead-in which creates a supply/demand dynamic that is very "tense". When a move comes out of this set of circumstances (a "compression low") volatility is very pronounced. Compression lows need tight stop-loss controls due to the speed in which they move. Some fail...and move down as fast as those that succeed move up. A good signal to highly suspect a large move up can be seen as an increase in volume on a very tight range day where the low of that day shows uptrend acceleration on a line drawn to the immediately previous day's low. It's that last volume kick while still not "broken out" from trading in a tight range that magnifies supply/demand dynamics to allow for a large move in a very short time. Doug R