Chapter VIII: A sophisticated method associates price levels with historical volumes. Such semi-abstract concepts as Support and Resistance may then be defined with mathematical precision. |
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| Volume Stratification Analysis begins with the concept of the Volumetric Profile. This Profile is simply the cumulative volume over the history of the stock, distributed according to price range. The red bar marks the price range corresponding to the current price of ADI shares. |
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Blue bars depict the Volumetric Profile for various price levels of Analog Devices, Inc.. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. General Volumetric Health is 1 on a scale from 1 (best) to 3 (worst), because the price is above the Volumetric line, indicating some positive market sentiment. Almost no volumetric support exists underneath the current price. |
| At least two layers of turbulence might act as resistance levels above the current price, particularly the one near the $33 level. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $33.00 - $33.99 | 5.00 |
| 2 | $75.00 - $75.99 | 0.14 |
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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. Only one volumetric minima (valley) is to be found near the $15 level. |
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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 ADI Common Stock |
| Friday, March 12, 2010: We have news on ConAgra Foods, Inc., ticker symbol CAG. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Convergys Corporation and Coach, Inc.. From the News Archive: (3/11/2010 ) A favorable event happened at Zimmer Holdings, Inc.. Meanwhile, bad news came from Fluor Corporation (NEW), Automatic Data Processing, and Home Depot. |