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

To: lexi2004 who wrote (61525)	3/12/2006 3:21:20 PM
From: chowder	Read Replies (3) \| Respond to of 206182

OK, now I'm going to tell you a secret to show how I use price by volume. I recall a baseball player explaining his success on his ability to hit for average. He said to hit em where they ain't. Sounded logical to me. Hit the ball away from an opposing player so they can't impede your success. That's how I use price by volume. I enter where it ain't. The hardest thing for me to change after learning technical analysis was to change my way of thinking with regard to reversals. When buying reversals, in most cases, involves buying into overhead supply. It's that overhead supply that often throws us out or turns it into a double play. I have learned, through experience, that the most effective results come from continuation set ups which requires price "breaking out" of a price support range or "breaking out" to recent price highs. The reason for this is a lack of overhead supply, sometimes charted via price by volume. I look to enter where there is a void of overhead supply. Here is an example of a chart set up I presented on 12/20 and just closed the trade out this past week for a 29.2% profit. I was looking to buy as price was breaking out of a base. stockcharts.com[h,a]daclyiay[d20051020,20051220][pb20][vc60][iut][J65113138,Y]&listNum=1 Here is the full analysis. Message 21988902 In looking for my entry on DRIV, price was entering a price range void of overhead supply. That's why the gap closed so quickly. Price was breaking out of a base into a price range void of overhead supply. Here is a chart showing that void, using price by volume. stockcharts.com[h,a]daclyiay[d20051020,20051220][pb50!b20!i!f][vc60][iut]&pref=G On 2/2 I presented a set up for AX, now NYX and the set up was a weekly break out to new highs. stockcharts.com[h,a]waclyiay[d20050202,20060202][pb20!b40][vc60]&pref=G I closed that trade out this past week for a profit of 28.5% Here is that analysis. Message 22125054 Price by volume would not have helped with AX/NYX because the entry point was void of overhead supply. That's why price was able to move as quickly as it did. stockcharts.com[h,a]waclyiay[d20050201,20060201][pb50!b20!i!f][vc60][iut]&pref=G On the downside, I'm sure to be out of a position when price begins to enter a price range void of demand. I use price congestion for support and that's another analysis for later. >>> BTW, do you watch the raw data in a stock you're trading? <<< Sometimes. To me, the chart is the chart. Once I'm in the trade I then manage the position, taking profits as I go and moving my stops up at the same time. What happens, happens. I keep it as simple as possible. dabum