Forum Archive Index - June 2003
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[sharechat] POA Chart
Heavy insider trading just before announcements shows up quite clearly on
charts. It is characterised by :-
(1) An unusually large jump in the Opening price.
(2) Continued buying pressure throughout the day resulting in an even higher
Close.
(3) Unusually large volumes being transacted.
Before we get into conspiracy theories and decide that dodgy dealing has taken
place here, let's examine the facts.
(1) There was NOT an unusually large jump in the Opening price - I have marked
days that had larger increases with red arrows. This rise was therefore quite
unexceptional.
(2) The day in question (23/6/03) was marked by a "four-price Doji". This is
when the Open, Close, High and Low are all the same, representing total
uncertainty among both buyers and sellers as to market direction. In other
words, buyers and sellers are exactly equally matched - there was insufficient
buying pressure to raise the price above the Open, at any point, all day.
(3) Volume (Marked by Magenta arrow) was quite unexceptional. Who bought up
big? - Nobody.
There is no evidence here to support the claim that there has been insider
trading.
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