Showing posts with label Volume Price Spread. Show all posts
Showing posts with label Volume Price Spread. Show all posts

Tuesday, October 12, 2010

Sample 9: Excessive Volume Upbar may not be a good thing


Looking at the two marked areas with extremely high volume with positive closed. But
what happened the next day? Price began to tumble instead of moving higher. This
is really confusing as why price fell after a solid upday on the previous day.

This is clearly detected by my Expert Indicator which showed the message "Professionals are
distributing". But why distributing and not accummulating more to the upside instead.
The reason that I can imagine is that the Professionals with huge book orders are unable to
unload all the shares at in a quiet market place. They have bought much earlier at a discounted
price and waited for the right time to unload the inventory to make a pile.

The only way to unload the massive inventory will be during a bullish market day where there are
more demands. This will be the time where the Professionals will be able to unload to the demand side of
the market. After unloading, there are no reason for the stock to go higher  and this can be verified
by the next trading day volume which is usually average to low volume. Price will start to move lower
to find its next support level where the Professionals will enter again to accummulate the base which
later become the FULCRUM for the price to move higher again.

This is how I interpret the market, this is my way!

Thanks for reading!

Monday, September 20, 2010

What is your edge over High Frequency Trading by Big Boys?

Hi All

Frankly Speaking, for Average Investors who read Financial Newspapers, watch Market News on TV, listening to your Broker's advice are just plain useless and nonsense. Average Investors are meant to be
slaughtered like the sheeps or cows for their delicious meat products.

Since Average Investors have no edge in trading the Market then why bother to open trading accounts at all.
The answer lies in the brain of everyone of us. Greed. We want to have more money by betting along with the Bullish Market and hopefully the stock that we purchase, turn out to be a home-run. Woo.... Fat Hope.

Since we are riding the Bullish Market and witnessing our capital invested starting to break even and then profit start to roll-in. We get extreme bullish and arrogant that the Market is not that difficult to make some good Money at all.  We can dream of quiting our boring jobs and become a full-time traders instead.

But how many  of us actually become successful full-time traders using retail base trading stations where the
Professionals have direct access to the Quote terminal to log in their ordres in millions of a second. We have no edge again.

Are we doom to fail in this trading Business at all? Do we have an edge to take a small bite off the huge pie and still enjoy our Return in Capital Invested?

Well, most of the technical indicators are derivatives derived from Price and Volume and most are lagging in nature.

So If you ask me then what is the leading indicators then? My answer is the actual daily Price and Volume Action where the actual Demand and Supply are reflected on the daily Price and Transacted Volume.

If one can read off the Price and volume without the use of any derivative indicators to reveal the hidden Supply and Demand from the Smart Money. Woo, this is the ultimate chart reading skills.

Trading has always been a passion and a challenge for me, like many investors. I have read near hundred of books covering from Fundamental Analysis to Contrarian Trading to Technical Trading. I must say that the more information that I absorbed, the more techniques I will be urged to test out and eventually lose a portion
of the money but losing is good for me. I start to understand what skills should I acquire instead to suit my  personality instead.

I have developed a series of codes that help me to probe the Market Momentum whether the trend is about to change direction and if I should take a position in it. The Scanner enables me to scan the hundreds of stocks each day  to pick out the potential ones that exhibit internal strength or weakness for further analysis.

The Stock chart has been colored coded to show change in trend from Positive Green to Negative Red, not to mention the Trend Cluster below the Volume chart shows the same intention.

With each carefully programmed codes for the Expert Advisors such as Professionals are Distributing, Reduced Selling Pressure, No Supply, Trap Upmove, Lack of Demand, Price Pullback Up, MarkUp Bullish, Bottom or Top Reversal, Uptrend or Downtrend, Test Base, Supply overcomes Demand or Demand overcome Supply,Strength Coming in and more.

Besides, all these codes are converted into scanning code to pick up each incident. Such as scanning for "Strength Coming In" show me all the charts that exhibit this criteria for further analysis.

So far for now, I got to logoff.  Do we have an edge as a retail investor? Now, the answer for me is YES.
You need to have the right tools to take on this challenging, cruel and realistic Market Place where the Informed Group takes all the advantages from the Uninformed.

Be part of the Wolves Pack instead of the Majority Herd in the trading arena. Good Luck and many Profitable Trading Ahead for us!

Sample 3: Another Potential Stock Picks Up by VPSA Scanner

Sample 2: How VPSA scanner picks up winning stocks all the time?