Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: ridingycurve who wrote (8434)	3/19/2006 7:03:37 PM
From: chowder	Read Replies (2) \| Respond to of 13449

>>> I’m also curious how you determined that only the first two wide range bars represented professional buying, and momentum buying took over thereafter. I added CMF to a CHNR chart, and couldn’t tell from it. <<< You won't find an indicator to confirm it either. The knowledge comes from many books I've read of how professional traders play the market. Professional money can often be tracked by the length of the bar or candlestick when accompanied by volume at 50% or more, above the daily average. Professional traders are also taught not to chase after price. They will create the break outs and take profits as others drive price higher. Professional traders, for example, are taught to never enter a stock that has shown 3 consecutive up days. They wait for a price consolidation. They are taught to never short a stock after 3 consecutive down days. Again, they wait for a consolidation before entering the trade. stockcharts.com[h,a]daclyiay[db][pb50!b20!f][vc60][iut!Lc20!La12,26,9]&pref=G I thought this book, "Trading On Volume," was worth the money. amazon.com If you read Investors Business Daily, all he talks about is volume break outs and how they are the result of institutional money. IBD focuses on the highest volume stocks every day, not the stocks that moved the most in price. I have read where some professional traders will not enter a stock when their price target is hit unless it is accompanied by average volume or more. They will wait days or weeks until a larger volume day appears before entering, provided price is still above the trigger price, They do this knowing they will have to pay up in price. For example, you may have a trigger price of $35 but on the day the price is supposed to trigger the trade, the price movement was not confirmed by volume. Price may trade up to $40 before the big volume day occurs. That's where they will enter the trade. Other professional traders will enter a stock when the price triggers and average up when the next big volume day appears. There are quite a few buy and sell strategies out there that are volume based. dabum