• 20 hours The Biggest Loser In The China-U.S. Tariff Tit-For-Tat
  • 2 days Trade War Takes Its Toll On Shipping
  • 4 days Is $90 Oil Possible? An Interview With Jay Park
  • 5 days Billions Of Dollars Are Flooding Into The Flying Taxi Space
  • 5 days Is This The Most Important Energy Project Of 2020?
  • 6 days Startups Are Dying To Give You A Better Death
  • 6 days U.S. Restaurants Are Struggling With Rising Labor Costs
  • 7 days The Banking Bonanza Is Just Getting Started
  • 7 days How The Trade War Ceasefire Will Impact The Energy Industry
  • 8 days Who Is The Most Dangerous Person On The Internet?
  • 8 days SoftBank Sees First Quarterly Loss In 14 Years
  • 10 days Prepare For An Oil Glut In 2020
  • 11 days Why A Strong Yuan Is A Promising Sign For The Trade War
  • 12 days What Would You Sacrifice For A Debt-Free Life?
  • 12 days Shareholders Urge Major Bank To Stop Funding Fossil Fuel Companies
  • 12 days Tariffs Are Causing A Slowdown In U.S. Manufacturing
  • 13 days The Great Silicon Valley Migration Has Begun
  • 13 days 3 Oil Stocks Paying Out Promising Dividends In 2020
  • 14 days How Fractional Trading Is Democratizing the Stock Markets
  • 14 days Why Smart Money Is Looking To Short Aramco
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

readtheticker

readtheticker

readtheticker

We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides online…

Contact Author

  1. Home
  2. Markets
  3. Other

There Is Only One Reason For This Type Of Price Action

Football Player

Sometimes it is this simple. Demand and supply is the first and last law in the stock market.

The chart below is a stock that will remain a mystery. Members can see it in RTT WC blog.

A - Wide spread (High less low of the day)
B - Narrow spread.

The volume of 'A' and 'B' are the same, both are above average, Yet with 'B', price spread is narrow, so what is going on? During 'A' selling price pressure forced price down with ease, hence the wide spread. With 'B' the same volume could not force price down, thus the price level at 'B' was defended, selling was absorbed. The Wyckoff Law of Effort vs Results reminds that demand has overcome supply, and thus a bullish sign.

C - Wide spread
D - Narrow spread.

The volume for 'D' is much greater than 'C', and yes 'D' is like 'B', and 'D' shows more aggressive absorption, more determined buyers overcoming the sellers. This is bullish, the effort by the sellers has shown poor results to move price down, for the simple reason bulls has been able to defend the price level at 'D'. Add to this price is holding well at support.

Yes we have absorption at 'D', but we need more positive action to prove the demand has over come supply to see price rise substantially beyond 'D'.

Mystery Stock
Larger Image

Investing Quote...

"Thus, I affirm, every class of phenomena, whether in nature or in the stock market, must be subject to the universal law of causation and harmony. Every effect must have an adequate cause." ~ William D Gann

"October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February." ~ Mark Twain

 


NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net

 

Back to homepage

Leave a comment

Leave a comment