Accumulation/Distribution

[charcoalstick]

Which brings us to the third chart, which includes the time period you're interested in. In context, one can see that there is clearly something going on with that first spike that has nothing to do with accumulation. There may have been news of some sort. Or rumor. Something. But whatever buying interest there was was purely momentary; there wasn't nearly enough to sustain an upmove.



Db

A breakout from accumulation that is spiked up in terms of price and volume is most likely unsustainable for a substantiable markup phase?
Is that any signature breakout pattern that are most favourable for a sustained run?

TrAc does decline, but there is no pullback in price. Price instead just hangs there in limbo. There is insufficient buying interest to push it farther (if there were, price would rise). But there is also insufficient selling pressure to push it down. At least for the time being. Finally, five bars later, there is a spike in TrAc and price closes near its low, not a good sign. On the other hand, price hits the S established in early September with no significant increase in selling pressure (if there were, TrAc would be higher). In other words, sellers, for now, are done.


Db

In the period when the price just hang there in limbo, is that any signal from market which way it is going?
On a close look, there seem a V shaped pattern in price and volume during this period. As the trading activity increase, the price try to rise from the V shaped but always kind of selldown from 1.62 resistance ( doji and subsequent black candle). -> Can I interpret this as a warning signal?
any comment?

This is not my trading vehicle. I m vested in her subsidary pacific andes, Pad.SG listed in singapore, based on FA. So sometimes I looked at the hk chart as reference.
Any comment of singapore listed pad.sg chart? Have been sleeping despite the surrounding bullish sentiment. Wonder whether this is healthy?

 

[dbphoenix]

A breakout from accumulation that is spiked up in terms of price and volume is most likely unsustainable for a substantiable markup phase?

Probably. Think of a spike up as a steep ladder. The only places that buyers can buy are the rungs on the ladder. If price isn't sustained, it can drop through those rungs like a hot knife through butter.

However, if price moves out of the base more gradually, like a stair, there are more steps, more opportunities for more traders, more buypoints. If price pulls back, or even reverses, there are many more stopping places and many more invested traders to retard or stop the decline. This is why a gradual angle of ascent in an uptrending stock is generally safer than one with a parabolic rise. It's called "good buying".

Is that any signature breakout pattern that are most favourable for a sustained run?

See the first chart.

In the period when the price just hang there in limbo, is that any signal from market which way it is going?

Don't concern yourself with that. Trade what's in front of you, not what you hope or fear will happen.

On a close look, there seem a V shaped pattern in price and volume during this period. As the trading activity increase, the price try to rise from the V shaped but always kind of selldown from 1.62 resistance ( doji and subsequent black candle). -> Can I interpret this as a warning signal?

A failure to move ahead can be a warning signal. Depends on the setup and the context. But it may be no more than a justification for tightening the stop, not a reason to exit.

Any comment of singapore listed pad.sg chart? Have been sleeping despite the surrounding bullish sentiment. Wonder whether this is healthy?

Can you post a chart? If not, generally speaking you're better off trading the leader, not the laggard.

Db

 

[charcoalstick]

Can you post a chart? If not, generally speaking you're better off trading the leader, not the laggard.

Db

Pls find the chart in the pad file attached. thanks
(i can only attached it as a file, how to attached as thumbnail?)

Isn't it better to find a laggard for more upside than a leader?
Or are you trying to say it is better off trading the leader so as to ride the trend of the leader?

 

[charcoalstick]

projected target after breakout

How should the target price be determined after a breakout from accumulation?
When is the time to sell?

 

[charcoalstick]

What are the signs of a stock in acculumation that is on the verge of markup phase?

Think the best way is to look at real example
Pls refer to the charts attached?
Do they show any signs of breakout?

My opinion:
It is on a uptrend after a seemingly shakeout to the lowest support price.
Along this uptrend, it has consolidated further with a double bottom before the upsurge last thur when it hit 0.77 ( previous high 0.756 on 2 occassions).
Last thur, also see big buy transaction (pls refer to the time and sales data file at circled parts)
there seem pretty good retail demand at 0.765 from the number of transactions taken place last thus (pls refer to the time and sales data)


Any comment so that i can learn?
thanks

 

[dbphoenix]

Any comment so that i can learn?
thanks

If you'd like to post to the PV Group, click "Mapping the Territory" below my name.

Db