Chapter VIII: Volume Stratification Analysis (or VSA) follows price behavior in relation to historical volumes of R stock sales. Knowledge of these behaviors gives us a quantitative metric useful for understanding Support or Resistance Levels, and predicting their strength. |
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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. Here the price column corresponding to the current price of R stock is painted in red. |
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Blue bars depict the Volumetric Profile for various price levels of Ryder System, 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. A few layers of volumetric turbulence exist that could provide support on the downside. The most significant of these is found around $7. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $33.00 - $33.99 | 2.36 |
| 2 | $16.00 - $16.99 | 4.24 |
| 3 | $7.00 - $7.99 | 4.43 |
| Several minor strata of volumetric turbulence could exert resistance against price appreciation, most notably, the peak at $50. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $39.00 - $39.99 | 1.68 |
| 2 | $50.00 - $50.99 | 1.97 |
| 3 | $62.00 - $62.99 | 0.65 |
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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. Two sharply defined valleys exit below the priceline at $30 and $12. The deepest is near the $30 strata. |
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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 R Common Stock |
| Thursday, March 18, 2010: We have news on MicroSoft, ticker symbol MSFT. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Mylan Inc. and Patterson Companies, Inc.. From the News Archive: (3/17/2010 ) Favorable events happened at LoJack Corp and ACM Income Fund. Meanwhile, bad news came from LSI Corporation and Sempra Energy. |