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Friday's 2000+ advances caught my eye too and to decided what to do about it
requires some more tools. Looking at the cumulative net volume, CVnya,
helps to decide if the strong advances would be followed by a reversal. The
hourly cumulative net volume(Moontide) is just now coming off of a bottom
and should be making a rounded top when the ADV is peaking. So I would say
its a bit early to make a complete reversal. It might make a partial
pullback, but my guess is it would be bought into and then move higher next
week. One general observation is that the $ADV or $DECL can run for 3 to 5
days before a trend reversal. So once you get a buy, start the countdown
timer for risk control. The other useful view is the flow rate and raw net
volume. This is discretionary stuff but the simple directional and strength
volume patterns can add a degree of psychological conviction to the
decision making process. After 3 days of increasing $ADV a trader might
look for price to continue up a bit and the $ADV to drop off or diverge
before an actual price reversal occurs. Divergences between price and
breadth can be the clue.
BobR
----- Original Message -----
From: "Ron Cernokus" <roncer@xxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxx>
Sent: Friday, December 22, 2000 7:32 PM
Subject: [RT] Adv\Decl oddball
>
> Bob,
> Do Think today is another example of a possible reversal set up for
> tuesday based on the Adv/Decl?
> Thanks And Happy Holiday
>
> Ron
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxx
>
>
>
>
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Attachment:
Description: "flowrate.gif"
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Description: "CVnya.gif"
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