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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| The Volumetric Profile is the central concept behind Volume Stratification Analysis. This is nothing more than the cummulative volume according to price range. Here the price column corresponding to the current price of CSCO stock is painted in red. |
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Blue bars depict the Volumetric Profile for various price levels of Cisco Systems. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. The Volumetric average at $15 is below the Secular average at $17. This is a very un-usual condition. The only significant volumetric support exists in the area around the $18 level. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $18.00 - $18.99 | 4.15 |
| At least two layers of turbulence might act as resistance levels above the current price, particularly the one near the $52 level. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $52.00 - $52.99 | 0.25 |
| 2 | $65.00 - $65.99 | 0.22 |
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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 $10 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 CSCO Common Stock |
| Wednesday, July 01, 2009: We have news on Public Service Enterprise Group Inc., ticker symbol PEG. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning The Travelers Companies, Inc. and Kellogg Company. From the News Archive: (7/1/2009 ) Favorable events happened at Allegheny Energy, Inc., Bank of America Corporation, and American International Group, Inc.. Meanwhile, bad news came from Lexmark International, Inc.. |