Fw: reaction and reaction with volume

["Lionel Issen" <lissen@xxxxxxxxx>]

Here is a reply that  Katie Aiguirre sent me about some of the indicators I
asked about that are not listed in the indicator list, but are listed in the
function list.

I'll try them out, but I am not too optimistic. It seems to very difficult
to correlate volume with price action. Currently it seems that volume
follows price movement. If there is a big change in price, like gapping up
or down, volume seems to increase after the price change.

Comments please.
Lionel Issen
lissen@xxxxxxxxx
----- Original Message -----
From: "Katie Aguirre" <kaguirre@xxxxxxxxx>
To: <lissen@xxxxxxxxx>
Sent: Monday, October 02, 2000 1:54 PM
Subject: reaction and reaction with volume


> Dear Lionel:
>
> Ken asked me to follow up on some information you requested.  I asked
> another person in our office where the information came from and he
> forwarded me this:
>
> Volume reversal
>
> The volume reversal method by Mark Leibovit is a registered trademark of
> Almarco Trading Corporation, and is based upon the theory that volume
> precedes price, and that increasing and decreasing volume can foretell a
> change in the direction of prices. There are four types of price action
> days:
>
> Inside day. Intraday high is no greater than prior day's high, and
intraday
> low is no lower than prior day's low
> Outside day. Intraday high is higher than prior day's high, and intraday
low
> is lower than prior day's low
> Rally day. Intraday high is higher than the prior day's high, and intraday
> low is at least as high as prior day's low
> Reaction day. Intraday low is lower than prior day's low, and intraday
high
> is no higher than prior day's high
>
> A Volume Reversal occurs when there is a change from a correction day to a
> rally day, or vice versa, as long as the change is accompanied by an
> increase in volume. A change to a rally day with increased volume is a
> positive or bullish Volume Reversal, and is considered a time to buy. A
> change to a reaction day with increased volume is a negative or bearish
> development, and is a time to sell. In Volume Reversal theory, inside to
> outside days are ignored. Others, however, consider outside days
> significant.
>
>
> I hope this helps.  If this isn't what you're looking for, let me know and
> see what else I can find out.
>
> Katie Aguirre
> Equis International
>