Category: volume pattern
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Chart of the day: DIG
Today’s swing trade stock chart of the day is DIG. Energy is showing positive money flow and the sector has broke out over the 50 day moving average. Here we can place a stop under the moving average with a target at the recent February pivot high at $57. Subscribe…
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You need to know this fundamental change in oil’s character
Swing Traders focus on two key elements when assessing a stock’s trend, volume and price action. Volume often precedes price action as the big players leave footprints that are tough to hide. During oil’s parabolic downtrend, volume has consistently shown a distribution pattern while basing before it’s next leg down.…
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NFLX Trade
I entered NFLX today at $186.11. Here is what I wrote to trade report members: My watchlist is rather small right now and there aren’t any good entries, so I’m going to take this opportunity to analyze a focus list stock that is not an easy sell as a long…
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Today’s Entry: STP
I entered STP today on weakness. The stock has shown strong strength in relation to the market, and shows a strong volulme pattern on the recent move up. My target is the September high.
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VPRT Showing Signs of Cracking
Notice the negative volume pattern during recent consolidation period.
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The Apple Short Trade Continues
The AAPL short trade is turning into a textbook example of the overbought and evening star candle setup. So what do we do from here? Support may be found at the old pivot high, around $135. This would be a good area to exit shorts and possibily enter long. However,…
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Distribution Showing Up In Brazil ETF (EWZ)
EWZ, along with the other BRIC countries, has been on fire of late. However, the recent consolidation has the look of a short term top, with the volume pattern suggesting distribution. Note the high volume down days during the recent consolidation.
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Today’s Trades: SKF and SRS
I used today’s strength to enter two bearish focus list stocks today, SKF (financials) and SRS (real estate). Both are inverse shorts. Note that strong volume pattern during the price consolidation range. There is still room to pullback, so I used small position size. 300 shares SKF at $44.11 400…
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Strategy Session: Using Distribution Patterns to Predict Trends and Trend Failure
The second most important aspect of my trading strategy (behind support and resistance) is using volume to classify stocks that are under accumulation and distribution. Distribution is under way when, over a period of time, stocks show higher volume on down days and lower volume on up days. In a…
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Volume and Bottom Formation
Notice that volume during the second leg of the “W” formation is less than that of the first leg. If a bottom formation is in the works, this is a good sign.
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Trade: USD
I took a position in USD today. Price has held up well and is at a strong support level. Notice the positive divergence in OBV compared to price.
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A Crappy Picture That Clarifies the Ideal Volume Pattern
This picture I created ain’t pretty, but it does a good job of showing the type of volume pattern I look for during bottom formations:
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China’s Chart Give’s a Clear Answer
The FXI weekly chart is quite illuminating and a good example of the importance of volume. What does the current volume pattern tell us? Compare to the previous volume patterns during the top and bear run, and the answer is clear . . .
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Trade Update: JRCC
I took a small short position today in JRCC. The stock has been in a strong topping downtrend and has pulled back up to the 50 day MA. Stochastics are near overbought levels and volume has been average on the pullback. This is a low risk entry with stop placed…
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RBN Exit
I exited my position in RBN at $51.50 (entry on Friday at $47.46) for a $1010 gain (+9.2%). I would have liked to see a pullback to the breakout point in order to build my position, but I’m not going to complain too much with a 9 percent one day…
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Anatomy of a Trade: WYNN
I shorted 500 shares of WYNN 8 days ago at $85.03 based on a “dirty bear flag” setup. While technically not a bear flag, the stock had broken support on was pulling back up to the resistance point. Volume distribution pattern was bearish, meaning heavy down days with low volume…
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Why Do You Like DUG
Here is an e-mail I received today: MS,Why do you like DUG so much? It looks to me like you are trying to pick a top in oils, just like you are trying to pick a bottom in SSO. Don’t fight the trend man. SSO is going lower and DUG…
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USO
USO is starting to look interesting as a buy, but not at the current level. I have set my buypoint in the $95-96 range. The 50 day moving average should provide support for at least a bounce, and possibly a continuation of the upmove. The buy is contingent on volume…
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Trade: CYBS
I bought CYBS four days ago, after the stock had pulled back from the breakout point and stochastics crossed over from oversold territory. Since I did not post it here I won’t include it in my performance stats, assuming I ever get around to updating them (you can click on…
Paul J Singh 