Hickory Flow Test, page-55

The logic is not right, if the price is $1.00 and people are buy at $1.05 and sell at $0.95, that 5%, not 1%

Personally you should look at penny stock and see what happens to them after consolidation. most of the time they end up like my example below and this is a real case that happen in the last year.

I bought in a stock for 1,000,000 shares at $0.002 so spent $2000.

They consolidated 20:1 so my stock become 50,000 shares at $.04c

Since consolidation, the shares have dropped and trading at $0.010 so my shares are now worth $500 today.

before consolidation the lowest it could drop was $0.001 meaning if i sold at the lowest tradeable price, i would only lose $1000.

Now after consolidation, the SP can still get to $0.001 meaning my share would be worth $50.

consolidation are good from some prospective and normally for new shareholders wanting to buy, it is generally bad for the ones holding.