Chapter VIII: Volume Stratification Analysis (or VSA) follows price behavior in relation to historical volumes of ACAS stock sales. Knowledge of these behaviors gives us a quantitative metric useful for understanding Support or Resistance Levels, and predicting their strength. |
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| The Volumetric Profile is the central concept behind Volume Stratification Analysis. This Profile is simply the cumulative volume over the history of the stock, distributed according to price range. Here the price column corresponding to the current price of ACAS stock is painted in red. |
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Blue bars depict the Volumetric Profile for various price levels of American Capital Ltd.. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. The Volumetric average at $14 is below the Secular average at $16. This is a very un-usual condition. The only significant volumetric support exists in the area around the $3 level. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $3.00 - $3.99 | 11.98 |
| Several minor strata of volumetric turbulence could exert resistance against price appreciation, most notably, the peak at $26. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $14.00 - $14.99 | 1.25 |
| 2 | $20.00 - $20.99 | 1.30 |
| 3 | $26.00 - $26.99 | 1.69 |
| 4 | $32.00 - $32.99 | 1.14 |
| 5 | $38.00 - $38.99 | 1.09 |
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| Horizontal maroon lines indicate Negative Volumetric Peaks. Price intervals with these characteristics are often associated with gaps, although they sometimes operate as support levels. Quarterly and yearly turn-arounds are circled. No major Volumetric Minima exist to support the current price |
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| Here, the horizontal lines mark the points of Maximum Negative Slope in the Volumetric Profile. These strata are known to act as resistance levels against upward movement, and are sometimes associated with yearly and quarterly tops. Also, as is typical of resistance levels, they may do double duty as support, but that is not the typical case. |
For Members: Deeper Analysis, with Price Predictions for ACAS Common Stock |
| In the news, Wednesday, March 17, 2010: A favorable condition has developed with CONSOL Energy Inc., ticker symbol CNX. Also, there are breaking events concerning CIGNA Corporation (CI) and Patterson Companies, Inc. (PDCO) |