Volume on the decline to F is light, a good sign. Sellers are not aggressively pursuing the price down. After the test at F, the stock rallies on moderate volume and widening spread. We are encouraged by this action, and now...
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Shakeout
The shakeout was a tactic often employed by trading pools. Harriman, in particular, favored the shakeout as a device for forcing traders to part with shares cheaply. His method was to first gather in all the ready supply within a...
Selling Climax
The selling climax at point A in the chart below is typical; volume increases dramatically as the spread from high to low widens. Such action indicates that panicky sellers are getting out at any price. With prices at immediate...
Module 2 – Accumulation
The Art of Buying These days, investors rarely form together into groups for the purpose of manipulating stock prices. Nevertheless, the aggregate operations of independent buyers and sellers are in many ways indistinguishable...
Charting Methods
The bar chart has two elements: 1) the price bar, including high, low and closing price; and 2) the volume bar. Most commonly, daily high, low, close and volume data are used to make bar charts. But any period may be used. Weekly...
The Supply/Demand Cycle and the Stock Market
When stocks are low in their cycle, shares move from weak hands to strong hands. Strong hands are accumulating shares; weak hands are still liquidating losing positions. This suggests that the buy-sell cycle of strong hands (SH)...
Strong Hands/Weak Hands
In the bad old days, before the SEC policed stock manipulation, investment pools were formed for the purpose of conducting campaigns in selected stocks. Pool managers of the day were well-known speculators, and included the likes...
The Tape
This course will show you how to form profitable judgements from price and volume data published by major stock and commodity exchanges. Price-volume data have advantages over other sorts of information available to traders...
Reasons and Causes
There is a constant shift in the rationale traders use to support decisions to buy and sell. During the ‘60s, “synergy” became popular. The stocks of companies successful at acquiring other companies were bid up...
Trading Systems vs Systematic Trading
In recent years, computerized trading systems have become popular. They range from very simple to very complex, from inexpensive to costly. Such systems, it is claimed, are emotion-free and therefore not subject to the...