M = Market Direction

[erierambler]

Not sure what the significance of these gaps is to you. They happen all the time and don't mean much, particularly since they're intra-range. What matters more are support and resistance. Fireworks are more likely as we near support. Until then, unless one has a strategy for trading intra-range, he'd do well to stand aside.

The significance of the gaps to me is what happens there ,as at the last one , some buying pressure occurred here today, more so than the others. These all filled. If you prefer I keep these posts to myself , it's no problem.

And yes I have a strategy for intra-range, it would be foolish to not have since price is range bound so much...........

erie

 

[dbphoenix]

No reason to keep them to yourself. Not my forum, anyway. But I've never seen any evidence other than anecdotal that the gaps matter much. But if they work for you . . .

 

[dbphoenix]

Since everything is so up in the air and this correction could go on for months, there may not be much point in posting these. But I did them for myself and posting them is no trouble, so . . .

Note that the diagonal lines are NOT trendlines but are drawn to show the legs. The horizontal lines are, of course, potential S/R lines.

 

[imahippi]

Hello DbPhoenix
your diagonal lines--legs--what kind of trend do they show? Up and down?
Also, I read your investing fairy tale---what a great little ditty! I am so new at technical analysis that I really need to read the last half again a few times and let it percolate.
I find myself wondering what you are like---you seem ultra bright and yet down to earth with no time for bs, which is a refreshing combo!
I have a few questions about your piece:
A shakeout. Are you saying a larger shareholder would purposely sell several blocks or whatever at a lower price to get scaredy cats to sell?
Also, to set myself up for this kind of investing I see I need better tools. I need to see things in realtime. What is the best way to subscribe to that? I mean what is the proper thing to ask for?
I am very keen on learning what you are doing and like anything else that has interested me I intend to immerse myself in it until it begins to get a little clearer. I can already see that it is somewhat of a vague science so to speak and seeing trends will come with experience.
thanks for your help.
jay
ps I was not the one asking about gaps even though I seem to have gotten a response about it

 

[dbphoenix]

As I said, they are not trendlines. A bull market consists of three legs. The first occurs after professional money recognizes value and bids prices up. This began two years ago, though the accumulation process began months before that. After the first correction, which ended -- supposedly -- last August, there is a second leg which determines whether what is potentially a bull market will continue or drop back below the level of the first correction and signify a bull rally in a continuing bear market. That's where we are now. If you're interested, I suggest you look at Hamilton's book on Dow Theory.

As for the rest of your questions, I don't know that they have particular relevance to CANSLIM. Perhaps a PM would be more appropriate.

 

[imahippi]

As I said, they are not trendlines. A bull market consists of three legs. The first occurs after professional money recognizes value and bids prices up. This began two years ago, though the accumulation process began months before that. After the first correction, which ended -- supposedly -- last August, there is a second leg which determines whether what is potentially a bull market will continue or drop back below the level of the first correction and signify a bull rally in a continuing bear market. That's where we are now. If you're interested, I suggest you look at Hamilton's book on Dow Theory.

As for the rest of your questions, I don't know that they have particular relevance to CANSLIM. Perhaps a PM would be more appropriate.

dbphoenix
what is a PM?
jay

 

[dbphoenix]

Private Message.