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. The red bar marks the price range corresponding to the current price of FRX shares. |
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Blue bars depict the Volumetric Profile for various price levels of Forest Laboratories, 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. The only significant volumetric support exists in the area around the $12 level. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $12.00 - $12.99 | 1.78 |
| Several minor strata of volumetric turbulence could exert resistance against price appreciation, most notably, the peak at $37. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $37.00 - $37.99 | 3.88 |
| 2 | $49.00 - $49.99 | 2.15 |
| 3 | $74.00 - $74.99 | 0.23 |
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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. $18 is the most significant of several valleys (i.e. negative peaks) in today's profile underneath the current price for FRX. |
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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 FRX 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 Texas Instruments Incorporated and Convergys Corporation. From the News Archive: (3/11/2010 ) A favorable event happened at Amgen, Inc.. Meanwhile, bad news came from Coach, Inc., Fluor Corporation (NEW), and Automatic Data Processing. |