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Thanks for the replies guys- much appreciated @Cabbie I like how...

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Rooster100

257 Posts.

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15/06/20

23:45

Post #: 45238320
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Originally posted by Cabbie: ↑

Really appreciated @Rooster100 and my thoughts on that spring like action on the 22/4 and where at first it doesn't appear to occur in an established support area.

There were two bars back on the 12th and 13th March which had above average volume yet an anomaly in spread, the second bar (the green one) should have been the recovery or the start of one but the downward move continued but not with the same intensity nor volume and finally recovered back above that resistance level given by those two bars. The dip into this resistance area on the 22/4 while not appearing as a spring as we know it was certainly a strong rejection of that support area.

The other bar I find interesting was the wide spread down bar of the 23rd March. It was not supported by a large increase in volume and subsequently the sp recovered as you've noted.

I do use volume at price (VAP) plots occasionally to confirm the type of analysis like the above but it will miss things like those two bars I mentioned.

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Originally posted by Jako8557: ↑

Hey @Rooster100

Yep I agree with most of that commentary.
I noticed whoever is running the show, hit the brakes a bit on the third bar of the reversal (which did not complete until the fourth bar - using TR).
There was an attempt to hold it back at that point - for whatever reason.

But yes, the buyers appear to hold the upper hand overall - no doubt.
I don't call those down waves with high cumulative volume 'bullish absorption', but I know what you mean (and you can call them what you like really).
I do note those two down waves in particular had some increased short sales in them as well, probably to help move the market down - and the daily short sales used were not really reflected in the short interest of either down wave - which is another anomaly.

Yes the stock is probably worth a few shekels on breakout (or test of the breakout).
Just remember that commitment to the positions is only modest right now (if the market tanks - for whatever reason - those position can and will be easily dumped at this point).
Once the mark-up begins the buyers will become more committed to their positions, and even more so as it moves higher - and at this stage there will be some defence against supply when it comes in, and positions won't be dumped very easily (but they can still be dumped if another Sh!t Sh0w starts again).

Nice pick up, and well worked out.

View attachment 2232231

cheers

.

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Thanks for the replies guys- much appreciated

@Cabbie I like how you described "some kind of battle occurred here...which left behind a strong resistance/support area" I'm gonna steal that turn of phrase for future chart commentary. There was actually another little battle area on the 9/10/11th of March where the Volume Profile (or Volume at Price) showed a thin HVN which also came in to play as the initial top of the trading range.

@Jako8557 yes "bullish absorption" is the wrong terminology for what I could see was happening, and I'd rather use language that most people use to avoid confusion. Someone clever must have come up with a snappy name for this effort vs reward anomaly?

So a question for you Jako- when you say that commitment to positions is only modest right now, what type of measurement or rule of thumb guide can we use to form an opinion on this? Is there a way to use P&F or something else and apply it to different stocks to give some sort of idea? Or is it something you get a feel for after doing a few more laps around the block?

Thanks, Rooster
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