why and how - understanding the price movement

Hi friends,

In order to understand the price movements of VPG today, I have displayed the hourly chart - as statistics show price movements are displayed around 6 times faster on lower time frame charts than end of day charts.

By casting cycle bands over the hourly price, you can see that the best entry signals for the stock occurred when price fell just below the 1% sigma p band level on the downside, and the best exit signal occurred when the price almost reached the 1% sigma p band level on the upside. This coincides with the breakout of a Trading Band (NOT bollinger), where you can see the progression of this trading band from a narrow constriction, to a wider constriction and then to a good breakout.

Presently, the price is moving within a very narrow constriction again, this time the price moving along the mid band, as it has done before in the past.



The sigma p band values for the present hour is displayed as well for those tracking the price.

Other posters have alluded to the Dow falling tonight.

Will price fall to the lower sigma band level again so that we have another edge band transaction or are we going to have a mid band transaction signal coming up, where prices will just break out of this narrow constriction currently without falling to the edge band?

There is a slight broadening of the trading band constriction to the downside as we speak, and that is not really a very encouraging sign...but then we have the afternoon session, and let's continue to see how things develop.

dascore