Forum Archive Index - August 2001

[Phaedrus <Phaedrus@techemail.com>]

Keith,
       Chart 1 is a weekly chart of all IBA data available. This gives a good 
overview of the big picture. It shows a clear break of a confirmed trendline - 
the longterm downtrend has ended.
 Chart 2 is a daily chart, in Japanese Candlestick format. This gives a more 
detailed view of the price action about the time of the reversal. Note the 
obvious classical price/volume climax at the end of June, as peak volumes 
coincided with the all-time low of 15 cents. See how, up to this point, high 
volume days (tall volume bars) were all on down days, and thus coloured red. 
This is characteristically Bearish. After the climax, the higher volume days 
are all on up days, and are thus blue. This is characteristically Bullish. 
Four-price Doji's occur when the Open, High, Low and Close are all the same 
price. As you would expect, they denote an exact balance between the opposing 
forces of the Bulls and the Bears. See how they occur at secondary reversals, 
as selling pressure is equalled by, and then overcome by, buying pressure. Many 
of the most recent candlesticks have long lower shadows ("tails"). These are 
caused by heavy intraday selling pressure being decisively overcome before the 
Close - evidence of strong buying support. The downtrend was broken on 6/8/01 
as prices closed above the trendline for the first time in well over a year. 
The last candlestick on the chart is a long white Marubozu (close-cropped). 
These have no upper or lower shadows, as the day opened at the lowest and 
closed at the highest price for the day. Buyers drove the price up for the 
entire session, and so completely dominated Sellers that the close was also the 
highest point prices reached during the day. The Bulls are now firmly in 
control, though there is often profit-taking after rises of this magnitude.
       Regards,
                 Phaedrus

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