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From: | "andrew cottingham" <arco@adinfinitum.co.nz> |
Date: | Tue, 18 Dec 2001 11:27:24 +1300 |
WAM - Equivolume Andrew ----- Original Message ----- From: jerrold poh <jerm@musician.org> To: <sharechat@sharechat.co.nz> Sent: Tuesday, December 18, 2001 11:09 AM Subject: Re: [sharechat] WAM Chart + EquiVolume Chart Request > > Looking at a WAM chart it appears to be quite similar to TEL. I can't > > see how to copy from Henley (any tips would be much appreciated) but I > > wondered if our resident expert Phaedrus could provide an update. The > > chart I am looking at shows price action reaching the intersection of > > a downward trend line which was started on 19/6, was confirmed on > > 25/7, 3/8, 6/9, and 11/12 and the recent uptrend line starting 25/10 > > and confirmed 3/12 (all dates are approximates). > > I know this email is directed at Phaedrus, but I wouldn't mind giving it > a shot (feel free to criticise / correct me :) ). > > Just to re-iterate your point, yes, I can see the downtrend you have > "drawn" :), and for the convenience of readers, have posted it on the > board (as wam01.gif), and like you said, this chart has a strange > similarity to the telecom chart of late. > > It all looks good, but the thing that worries me though is that there > isn't much volume support for the uptrend. If you have a look at > wam02.gif, I've got an indicator which measures accumulation / > distribution. > > This indicator goes up when there's a rise in price, and high volume > (which is good, because people are buying, and that's what's making the > price go up), and it goes down when the price rises, and there's low > volume. (conversely, it also goes down when the price falls, with > matching high volume, and when the price falls, and matching low volume). > > If you look at the indicator, it shows that the "momentum" around the > stock isn't very high at the moment, (shown by the indicator going > nearly flat). People are just basically "trading" the stock with each > other at whatever price. There's no big hype to buy, or sell the stock, > and I think people are both happy to buy or sell this stock around this > price range (efficient market theory?). > > Actually, I remember some talk of equivolume on this board awhile ago, > and wouldn't mind if someone posted a chart of wam in equivolume, just > to see how strong this stock is trending atm. I'm guessing it would > make a good complement to the accumulation / distribution indicator. > > > > Jerrold. > > > ---------------------------------------------------------------------------- ---- > -------------------------------------------------------------------------- -- > To remove yourself from this list, please use the form at > http://www.sharechat.co.nz/chat/forum/
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