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Strategies & Market Trends : A Simple List of General Do's & Dont's of Trading: -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (627)	6/5/1998 6:30:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 769

How to read Yahoo big one day chart? If you are looking for overbought or oversold info; add all the buy trades and subtract all the sell trades. The "on balance volume", thus calculated, gives you the extent of the overbought or oversold. But, in general, if you see more buy trades and the price pulled back, then the brokerage handling the trades had overbought condition. Different brokerages have different quotes, therefore, the trades could suddenly change prices when they report trades in sequence. Periodic selling or buying certainly has significance. Grouped buy and sell trades has significance. These interpretations are related to investors. Very large trades have significance. Round lot trades have significance. These are related to accumulation and distribution in brokerages. Full service brokers' office buys blocks sell to individual brokers (1000 shares) then distribute to their customers in round lots. But most important is the the firmness of the price day in and day out. It shows some institutions are having a buy orders to accumulate certain percentage of the outstanding stock. This usually confirmed later by SEC reports. Watch the 13D/A. Then, there is the number of transactions which shows the daytraders' action. some people might buy or sell 9:45am, then other follow after 10 am. That some people has to have following to have lots of activity. They can control the stock, swap cash funds among themselves, but provide liquidity for other investors in the same brokerage or even other brokerages. Any other irregularities can be detected in the one day chart? But that is another chapter on one day chart for another day.