friday, dippity dip dip day, page-59

Hi stu,

Individual bars in themselves don't mean a lot - they are only a part of the bigger picture. Its the background that provides context. Is there weakness in the background or is there strength in the background and always we watch for what happens next to confirm.
But to answer more directly - we view all trading as trading - and realistically if those 100 shares can drop PRRs price .5c it means there is no demand/support for the next tick up at that point in time - so the close would be a quite adequate/accurate descriptor of the final outcome of the battle between bears/bulls for the day. Generally speaking, the application of the principals are a lot simpler than trying to understand the exact reasons for why a particular transaction occurs. We aren't really interested in the why and wherefores - only the overall picture for the day. We are looking for a pattern - not why or how it occurs EXACTLY.
Generally speaking for a long entry (ultracondensed version) First we want really high volume beneath us in the recent past - PRR has that - (though it also has the same still above us) followed by testing or a shakeout of some sort that dips back down into that high volume area and rejects it (closing high) confirming there is demand at that level - and then the last is a really light volume DOWN BAR with narrow spread again into or above that area - (tells us supply/selling is disappeared) and confirmed by price rising on increased but non excessive volume confirms the signal and indicates they are priming for a push up. But we prefer to be out of a downtrend first (so lower high for starters) - So thats what we are watching for with PRR - not so much who's doing what - if we do that then we are over-complicating a simple setup. We only need to know GENERALLY what happens to understand the principals - apart from that we dont need to know EXACTLY WHY at any given time or specific transaction on any specific stock.
Hope that helps

Disco - thanks for your support mate appreciate it.

It appears that somebody (I cannot imagine who) had a problem with the links in my sig (or thumb envy perhaps) and complained to admin - who promptly (they are very efficient)
requested I remove them. After emailing admin it appears after review that the content was ok but I couldn't post links to other websites. As my links were to PDF FILES in my dropbox account - it was ok to keep them as links provided I advised that they are files and advised the file size. Thank you Admin for quick response to my email this morning and for kindly replying on your day off (I was not being sarcastic when I said they were efficient).

So peace to all and a special LOL to my Comrade BRR.

And we probably should keep these sorts of discussions to the charts forum rather than clogging up PRR (thats what I was expecting to get TOUd for).

Cheers