Chapter VIII: Volume Stratification Analysis (or VSA) follows price behavior in relation to historical volumes of LOW stock sales. Knowledge of these behaviors gives us a quantitative metric useful for understanding Support or Resistance Levels, and predicting their strength. |
| 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. The red bar marks the price range corresponding to the current price of LOW shares. |
| Prev. Co. | Next Co. | |
| ||
|
Blue bars depict the Volumetric Profile for various price levels of Lowe's Companies, 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. Two levels of volumetric turbulence underlie today's price. They are at (approximately) $20 and $12. The strongest is near the $20 strata. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $20.00 - $20.99 | 3.02 |
| 2 | $12.00 - $12.99 | 1.26 |
| Looking above today's price, there no significant resistance level to act as a ceiling on upward movement. |
| 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. Two sharply defined valleys exit below the priceline at $15 and $6. The deepest is near the $6 strata. |
| 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 LOW 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 D.R. Horton, Inc.. From the News Archive: (2/18/2011 ) Favorable events happened at Robert Half International Inc. and Southwestern Energy Company. Meanwhile, bad news came from McCormick & Company, Incorporated and Reynolds American, Inc.. |