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. |
| Prev. Co. | Next Co. | |
|
| ||
| 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 ATML stock is painted in red. |
| Prev. Co. | Next Co. | |
| ||
|
Blue bars depict the Volumetric Profile for various price levels of ATMEL Corp. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. General Volumetric Health is 3 on a scale from 1 (best) to 3 (worst), because the price at $4 is below both the Volumetric and the Secular lines, indicating an issue that has entirely lost reputation in the market. The only significant volumetric support exists in the area around the $4 level. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $4.00 - $4.99 | 7.71 |
| At least two layers of turbulence might act as resistance levels above the current price, particularly the one near the $18 level. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $18.00 - $18.99 | 0.44 |
| 2 | $25.00 - $25.99 | 0.12 |
| Prev. Co. | Next Co. | |
| ||
| 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 |
| Prev. Co. | Next Co. | |
| ||
| 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 ATML Common Stock |
| In the news, Wednesday, July 01, 2009: An unfavorable condition has developed with Lexmark International, Inc., ticker symbol LXK. Also, there are breaking events concerning Lennar Corporation (LEN) and The Travelers Companies, Inc. (TRV) |