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Here is one way of reading the tape on Friday. Top plot is of velocity in
terms of shares per minute. It needs to be high enough to create trend
conditions. The second plot down is the breadth in terms of an Advance
minus Decline spread. It helps dictate which side you should be on. The
third plot from the top is a volume spread of Uvol minus Dvol and the
fourth is price. The most significant feature is the inflection an hour
and a half before the close when the tide appeared to be changing on the
international waterfront. Descriptive comments are on the chart. Note how
the Uvol-Dvol only changed its trend from down to sideways, unlike the
Adv-Decl, Flow Rate, and Price.
BobR
http://www.oextrader.com/momentum.htm
Attachment Converted: "c:\eudora\attach\TAPEread2.gif"
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