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Re: Learning Technical Analysis Q&A

BRU was signalled on another thread.
Technically it has so much info for analysts I thought it appropriate to post discussion of it here.

BRU and all charts like it.

As a chart turns from a boring consolidation pattern often stretching years
we all look for opportunity. Often traders will buy and sit for years in a
stock hoping/waiting/preying and constantly looking for positives in every
announcement or discussion in a thread on their favorite stock.

No matter what form of analysis we use we cannot be 100% sure at anytime
that a stock will launch into the stratosphere. But we can keep ourselves
both in and out of a stock as it morphs from a maggot to butterfly and back
to maggot in many cases.

The main reason stocks cannot advance is SUPPLY. Without SUPPLY price will
rise even on the slightest demand as buyers search for sellers at higher
and higher prices.

SUPPLY MUST---Either WITHDRAW----OR BE ABSORBED and indeed Surpassed by excess DEMAND---When this happens generally Supply (Sellers) will WITHDRAW---
Price is then free to trend.

SUPPLY then comes and goes until for whatever reason SUPPLY exceeds DEMAND.
If DEMAND withdraws then price can and will fall even with the slightest
amount of Supply as sellers search for buyers at lower and lower prices.

SUPPLY MUST---Either WITHDRAW----OR BE ABSORBED and indeed Surpassed by
excess DEMAND (Yes SUPPLY)---When this happens generally Supply (Sellers) will WITHDRAW
Price is then free to trend.

So as we can see Supply is more important than demand.

So bear this in mind everytime you open a chart.

You should ask.

Initially on higher than normal volume bars.

What is price trying to do (on a high volume bar)
Is it succeeding (after a couple of bars).

Then on Very low volume Bars following a high volume bars

What is price now trying to do
Is it succeeding.
Does this action support the EFFORT seen in the HIGH VOLUME BAR?
Although there are very specific Signs of Strength bars (SOS)
This question can be asked of EVERY BAR.

The TRUE or beat read indications will be seen on the very high and very low volume bars
In my opinion and experience.

Knowing this then we will now visit BRU over a number of charts and
Ill point out things of interest as we go.

CHART (1) Click to Expand

[ATTACH]46459[/ATTACH]

Ill try for the next chart tomorrow.

<blockquote data-quote="tech/a" data-source="post: 691244" data-attributes="member: 257">Re: Learning Technical Analysis Q&amp;ABRU was signalled on another thread.Technically it has so much info for analysts I thought it appropriate to post discussion of it here.BRU and all charts like it.As a chart turns from a boring consolidation pattern often stretching yearswe all look for opportunity. Often traders will buy and sit for years in a stock hoping/waiting/preying and constantly looking for positives in everyannouncement or discussion in a thread on their favorite stock.No matter what form of analysis we use we cannot be 100% sure at anytimethat a stock will launch into the stratosphere. But we can keep ourselvesboth in and out of a stock as it morphs from a maggot to butterfly and backto maggot in many cases.The main reason stocks cannot advance is SUPPLY. Without SUPPLY price will rise even on the slightest demand as buyers search for sellers at higherand higher prices.SUPPLY MUST---Either WITHDRAW----OR BE ABSORBED and indeed Surpassed by excess DEMAND---When this happens generally Supply (Sellers) will WITHDRAW---Price is then free to trend.SUPPLY then comes and goes until for whatever reason SUPPLY exceeds DEMAND.If DEMAND withdraws then price can and will fall even with the slightest amount of Supply as sellers search for buyers at lower and lower prices.SUPPLY MUST---Either WITHDRAW----OR BE ABSORBED and indeed Surpassed byexcess DEMAND (Yes SUPPLY)---When this happens generally Supply (Sellers) will WITHDRAWPrice is then free to trend.So as we can see Supply is more important than demand.So bear this in mind everytime you open a chart.You should ask.Initially on higher than normal volume bars.What is price trying to do (on a high volume bar)Is it succeeding (after a couple of bars).Then on Very low volume Bars following a high volume barsWhat is price now trying to doIs it succeeding.Does this action support the EFFORT seen in the HIGH VOLUME BAR?Although there are very specific Signs of Strength bars (SOS)This question can be asked of EVERY BAR.The TRUE or beat read indications will be seen on the very high and very low volume barsIn my opinion and experience.Knowing this then we will now visit BRU over a number of charts and Ill point out things of interest as we go.CHART (1) Click to Expand[ATTACH]46459[/ATTACH]Ill try for the next chart tomorrow.</blockquote>

[QUOTE="tech/a, post: 691244, member: 257"] [b]Re: Learning Technical Analysis Q&A[/b] BRU was signalled on another thread. Technically it has so much info for analysts I thought it appropriate to post discussion of it here. [B]BRU and all charts like it.[/B] As a chart turns from a boring consolidation pattern often stretching years we all look for opportunity. Often traders will buy and sit for years in a stock hoping/waiting/preying and constantly looking for positives in every announcement or discussion in a thread on their favorite stock. No matter what form of analysis we use we cannot be 100% sure at anytime that a stock will launch into the stratosphere. But we can keep ourselves both in and out of a stock as it morphs from a maggot to butterfly and back to maggot in many cases. The main reason stocks cannot advance is SUPPLY. Without SUPPLY price will rise even on the slightest demand as buyers search for sellers at higher and higher prices. SUPPLY MUST---Either[B] WITHDRAW----OR BE ABSORBED[/B] and indeed Surpassed by excess DEMAND---When this happens generally Supply (Sellers) will WITHDRAW--- Price is then free to trend. SUPPLY then comes and goes until for whatever reason SUPPLY exceeds DEMAND. If DEMAND withdraws then price can and will fall even with the slightest amount of Supply as sellers search for buyers at lower and lower prices. SUPPLY MUST---Either WITHDRAW----OR BE ABSORBED and indeed Surpassed by excess DEMAND (Yes SUPPLY)---When this happens generally Supply (Sellers) will WITHDRAW Price is then free to trend. So as we can see Supply is more important than demand. So bear this in mind everytime you open a chart. You should ask. [B]Initially on higher than normal volume bars. [/B] What is price trying to do (on a high volume bar) Is it succeeding (after a couple of bars). Then on Very low volume Bars following a high volume bars What is price now trying to do Is it succeeding. Does this action support the [B]EFFORT seen in the HIGH VOLUME BAR?[/B] Although there are very specific Signs of Strength bars (SOS) This question can be asked of EVERY BAR. The [B]TRUE[/B] or beat read indications will be seen on the very high and very low volume bars In my opinion and experience. Knowing this then we will now visit BRU over a number of charts and Ill point out things of interest as we go. [B]CHART (1) Click to Expand[/B] [ATTACH]46459.vB[/ATTACH] Ill try for the next chart tomorrow. [/QUOTE]

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