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Actually, I calculate average daily volume during the period you displayed
in your chart to be 80,000 shares (55,000 shares if you exclude the two
2million+ days in July). Let me know if you want me to post the data and
calculations on which I based this.
Strictly my opinion, but I find this too thinly traded for technical
analysis tools to shed any light on the short or intermediate term. Longer
term trendline analysis might well be applicable, though, because it is less
susceptible to short term shocks or manipulations. I'm not saying this is a
bad investment choice or a good one, just that it is dangerous to apply
traditional TA tools as the basis for a decision.
Again my opinion, but I believe TA attempts to measure the mood of the
investing public. If one has a thinly traded stock, there is not enough
reliable data on which to gauge it. I would equate it to statistical
analysis with an inadequate sample size.
I've been jaded by working in the venture capital markets (VSE, OTCBB, etc.)
for many years, but I consider any stock with less than hundreds of
thousands of shares of daily volume to be high risk. And when I say high
risk, I don't mean risk of a price decline -- that's the standard risk
everyone here accepts. I mean the risk of being unable to sell because of
volume dropping, bids drying up, and possibly even going no-bid.
As far as pearls of wisdom on volume, Nicholas and Michel, I have little of
value. There are a lot of experienced stock traders and investors here who
can offer more. Unfortunately, my experience is based on seeing the picture
promoters are capable of painting with low-volume, small-float stocks (and I
don't mean to include CVSN in that sweeping generalization).
----- Original Message -----
From: Guy Gordon <gordon@xxxxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: September 21, 1999 01:05
Subject: Re: Nice flag formation in CVSN
> No, I'm not touting the stock. (Note the absence of exclamation
> marks, as in "Wow CVSN!!!!".) I'm not stupid enough to think you
> could move a stock by recommending it on a list server.
>
> Average volume is 200k shares. I doubt that invalidates trendline
> analysis. CVSN is showing a strong trend, and the flag pattern
> indicates it is ready to pop again. I just want to know if anyone
> agrees or disagrees and why.
>
>
>
> On Mon, 20 Sep 1999 15:49:45 -0700, "Glen Wallace"
> <gcwallace@xxxxxxxx> wrote:
> >
> >Assuming you're not blatantly promoting this stock and want true
> >feedback, what's the average daily volume on this stock (excluding
> >the late-July bump)? I can't tell from your scale, but it looks too
> >thin to be able to rely on traditional TA signals.
> >
> >
> >
> >----- Original Message -----
> >From: Guy Gordon <gordon@xxxxxxxxxxxxxxx>
> >To: <metastock@xxxxxxxxxxxxx>
> >Sent: September 17, 1999 16:19
> >Subject: Nice flag formation in CVSN
> >
> >> Chromavision Medical Systems (CVSN) makes cellular imaging
> >> diagnostics. On 7/29 CVSN go FDA approval for their cancer detection
> >> technology http://biz.yahoo.com/bw/990729/ca_chromav_1.html , leading
> >> to a strong jump in volume.
> >>
> >> The stock chart from Oct '98 thru the present shows a very nice
> >> trendline support. From 7/29/99 thru present there is a resistance
> >> line forming a triangle (flag) with the long-term support line.
> >>
> >> I've already bought some, and am thinking of buying more. I'd like
> >> other's opinions on my chart. Bullish or not? (You'll note I've got
> >> a stop price set just bellow the support line.)
> >>
> >> http://www.white-crane.com/stocks/cvsn.gif
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