Thank you NM that was fascinating so I investigated Mr Wyckoff and the CO theory......here's his base premise :
"Wyckoff was thorough in his analysis of the trading range. One tool that Wyckoff provides is the concept of the Composite Operator. Simply, Wyckoff felt that an experienced judge of the market should regard the whole story that appears on the tape as though it were the expression of a single mind. He felt that it was an important psychological and tactical advantage to stay in harmony with this omnipotent player. By striving to follow his footsteps, Wyckoff felt we are better prepared to grow our portfolios and net-worth."
What an amazing concept, I had never considered, and so now (for the exersize) I look at AJX trading as the EXPRESSION OF A SINGLE MIND, that is as if ONE PERSON is trading AJX. Now it becomes quite clear, when they reach approx 84 he gets nervous and sells small parcels to derisk, when they drop to 80 he feels anxious that he needs more stake should they boom and buys them up. In between he's also making around 3-4% albeit on small trades, but he makes a little bit of money and still has skin in the game.
If you were to look at the "tape" as one single mind trading, what do you see?
AJX Price at posting:
81.0¢ Sentiment: Buy Disclosure: Held
(20min delay)