7 replies to this topic

[Bob-C]

Hi everyone, the following chart depicts the number of INDU stocks making new highs on higher volume versus the number of INDU stocks making lower lows on higher volume compared to the daily INDU. During the past 2 days of INDU "rally" to all-time newe highs, the number of INDU stocks making lower lows on higher volume rose sharply while the number of INDU stocks making higher highs on higher volume dropped sharply indicated the nature of the "weighted INDU engineered run up" and the increased selling pressure and decreased buying pressure in the DOW 30 stocks.



The following chart depicts the number of INDU stocks making new highs and new lows without regard to volume compared to the daily INDU. The number of INDU stocks making new highs during the past 2 day INDU "rally" to new all-time highs dropped sharply while the number of INDU stocks making new lows rose sharply.



Cheers,

Bob-C

[fib_1618]

the number of INDU stocks making lower lows on higher volume rose sharply while the number of INDU stocks making higher highs on higher volume dropped sharply...

...Is actually a classic merchandising technique that specialists have used for many years to accumulate stock (higher volume on declines), while at the same time, keeps many traders sitting on the fence and guessing which way the actual overall trend is because of the lower volume highs.

Be careful.

Fib

[Darris]

semibizz linked this blog and discussion of money flow this weekend (thank you - good read), just in case some folks did not see it.

http://traderfeed.bl...ynamics-of.html

[arbman]

Fib, whenever they go up on thin volume out of a strong base, they retrace quite a bit of the gains anyway though...

[fib_1618]

Fib, whenever they go up on thin volume out of a strong base, they retrace quite a bit of the gains anyway though...

Sometimes, not always...and usually winds up as a simple snapback, but it also depends on the pattern.

To be a thief, you do have to think like one.

Fib

[Echo]

the number of INDU stocks making lower lows on higher volume rose sharply while the number of INDU stocks making higher highs on higher volume dropped sharply...

...Is actually a classic merchandising technique that specialists have used for many years to accumulate stock (higher volume on declines), while at the same time, keeps many traders sitting on the fence and guessing which way the actual overall trend is because of the lower volume highs.

Be careful.

Fib

Fib, this merchandising might apply to individual stocks and perhaps to a smaller index like the INDU 30 but not so much to the broader indexes. So it would probably be better to apply such TA to the broad market and sector money flow which is much harder to merchandise rather than individual stocks.

Echo

Fib, whenever they go up on thin volume out of a strong base, they retrace quite a bit of the gains anyway though...

Sometimes, not always...and usually winds up as a simple snapback, but it also depends on the pattern.

To be a thief, you do have to think like one.

Fib

Not to get you in any trouble with the law, but what are the top 3 rules for thinking like a thief?

Echo

[arbman]

1. Leave as little tracks as possible and do it as quickly as possible. 2. Find somebody to blame or do the job for you as much as possible, in case you might fail. 3. If you get caught, never accept you are guilty, in fact, pretend you don't even know what happened! Probably the basic 3

[*JB*]

Hey Bob -- How have you been?!?! I like the chart and what it indicates! Well done study!