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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (39563)	2/26/2005 4:45:39 PM
From: chowder	Respond to of 206321

>>> Every time I look at one of these charts I am reminded how powerful the signal is of the 50 dma crossing the 200 dma. <<< The power behind the move is caused by short AND long term traders coming to the same bullish conclusion. Instead of fighting each other, they are in alignment and bid the prices higher as they compete for supply. The parabolic moves come when the 20 day moving average is above the 50 and the 50 is above the 200. It's called a bullish alignment. As the price breaks out to a recent high, there isn't any overhead supply waiting to come to market therefore, no overhead pressure to push prices back. That's how Stage 2 trends like the one we are seeing in PTEN occur. When PTEN was down around $18.00, I wrote several times explaining that overhead supply would keep downward pressure on PTEN. That overhead supply is referred to as the "praying to God" crowd. Please God, just get me back to even and I'll never trade this stock again. It's overhead supply that keeps a stock in a trading range like PTEN was in between $18.00 and $20.00. The horizontal bars to the left of the chart will show those levels that represented the buying and selling at each price range level. Grey is buying, pink is selling. stockcharts.com[h,a]daclyiay[pi!f][vc60][iut]&pref=G Once PTEN worked through that overhead supply, it was able to stage a strong up move because both long term and short term traders were willing to come to market at the same time. dabum