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 ETFC shares. |
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Blue bars depict the Volumetric Profile for various price levels of E TRADE Financial Corporation. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. The Volumetric average at $62 is below the Secular average at $106. This is a very un-usual condition. Almost no volumetric support exists underneath the current price. |
| Several minor strata of volumetric turbulence could exert resistance against price appreciation, most notably, the peak at $130. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $130.00 - $130.99 | 1.68 |
| 2 | $230.00 - $230.99 | 1.60 |
| 3 | $390.00 - $390.99 | 0.14 |
| 4 | $550.00 - $550.99 | 0.09 |
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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 ETFC Common Stock |
| Friday, February 18, 2011: We have news on Fiserv, Inc., ticker symbol FISV. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Zimmer Holdings, Inc. and McCormick & Company, Incorporated. From the News Archive: (2/18/2011 ) Bad news came from Reynolds American, Inc., Dollar Tree, Inc., Zimmer Holdings, Inc., and NVIDIA Corp. |