Forum Archive Index - October 2001

["Nick Kearney" <nk@xtra.co.nz>]

Phaedrus

I would say it is a very weak uptrend and might need to see if 42c is broken
on a close b4 entering?

Would I be right (or close to it?)

Cheers

NK

----- Original Message -----
From: Phaedrus <Phaedrus@techemail.com>
To: <Sharechat@sharechat.co.nz>
Sent: Sunday, October 14, 2001 8:57 PM
Subject: [sharechat] BRY


> On 30/9/01 I posted a BRY chart with the following comments :-
>  "The current BRY chart is showing a perfect example of Volume confirming
Price movement. To confirm a price movement, volume should increase or
expand in the direction of the existing price trend. By monitoring price and
volume together we are using two different tools to measure the same thing -
buying or selling pressure. Volume tends to precede price, so a loss of
upside pressure usually shows up in the volume figures before it is
manifested in weaker prices."
>   That is exactly what went on to happen in this case. On 1/10/01 the
price rose strongly again, BUT the volume was lower. Same again on 2/10/01 -
price higher still, volume lower yet again. Upside pressure was weakening
fast - the falling volume signalled this clearly. The uptrend was faltering,
and ended the next day.
>   There were other clues though. Note the long upper shadow on the
candlestick of 1/10/01. Sellers were gaining ascendancy as they pushed the
Closing price well down from the days High. See how the High of the
following day was no higher than than that of 1/10/01 - another sign of
weakness, a "Tweezer Top". This candlestick also formed a "Star" - a
short-bodied candlestick that has gapped away from the long body of the
previous day. When followed (as here) by a black (Close below Open)
candlestick, this classical reversal formation is known as an "Evening Star"
so called because they appear just before darkness sets in.
>   Looking at the relative volumes, what would you say about the strength
of the current Uptrend? (Volume bars are blue when the Close is up, red when
the Close is down.)
>             Phaedrus
>
>
>
> _____________________________________________________________
> Are you a Techie? Get Your Free Tech Email Address Now! Visit
http://www.TechEmail.com
>


----------------------------------------------------------------------------
----







----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/