OSH 0.00% $4.04 oil search limited

huge buying suddenly, page-6

  1. 673 Posts.
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    cheech,

    yes, large buying does equal large selling. But there is a third part to this equation I'd like to throw in.

    Its, accumulation versus distribution.

    I did now not watch the market yesterday, but I can imagine that with almost 17 million shares exchanged, it is fairly safe to assume we had accumulation. For example five buyers took out 1 million shares in OSH stock from 10 sellers. A 1:2 accumulation ratio. In other words, the FEW taking up stock from the MANY.

    Today, however, the closing figures at the first level in the market depth table shows 22 buyers at 68c wanting 693,658 shares and only 6 sellers trying to rid themselves of 461,751 shares at 69c.

    This is a clear case of distribution where the FEW dump into the open arms of the MANY.

    My small example does not prove anything SPECIFICALLY, and I show it here simply to suggest that accumulation and distribution play as big a part, if not a BIGGER part in the buyers=seller equation. In my opinion it is vitally important to note whether a stock is being accumulated or distributed on such heavy volume days.

    I am neither for or against Cheech and his/her comments.

    I am neither for or against OSH, even though I did buy in today. I am a trader, not a holder. I am in it due to the CBL, chart pattern and Guppy MMA signal.

    With a close below 67c, the pattern fails, the trade fails and I'm out with a 2c loss per share.
 
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