ahh quiet day on our markets today hey
todays bar could be seen as a tad of strength BUT in reality imo as a weekly bar it's looking the complete opposite just like a pimple on the end of your nose
indecision and like everyones been mentioning just waiting for that silly EU meeting/s
XJO chart below with a few thoughts
also jgunter, ref that word 'accumulation', your possibly quite correct in the stocks your referring to, but further below is the typical way I see and think of the word and how it applies
cheers all
Accumulation
Accumulation is a process through which the SM acquires a large quantity of the stock at the lowest possible price.
Accumulation is a subtle, sophisticated and sly process of cornering a huge quantity of the stock that makes the following phases possible and worthwhile.
Once a large quantity has been absorbed the number of floating stock reduces and the demand increases.
This makes possible the next phase Markup.
Accumulation normally takes place in congestion areas. Congestion area are mostly sideways range bound movements where the stock appears to have no interest to either move up or move down.
The SM ensures that the stock is contained below a certain upper level which is the supply area.
At the same time the SM also supports the prices above a certain lower line which is the support area.
The stock moves within an upper resistance or supply area and a lower support area.
The congestion areas are characterized by indecision.
One of the most important characters of congestion areas is the Low Volume.
When most traders are bullish or bearish the volume is high.
Low volumes indicate indecision among the traders on bullishness and bearishness.
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