Chapter VIII: Volume Stratification Analysis tracks the volumes associated with price levels over the entire history of a stock. The resulting analysis yields a framework for understanding the mechanism behind support and resistance levels, and a scientific basis for predicting price behaviors due to those levels. |
| Prev. Co. | Next Co. | |
|
| ||
| 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 SGP stock is painted in red. |
| Prev. Co. | Next Co. | |
| ||
|
Blue bars depict the Volumetric Profile for various price levels of Schering-Plough Corporation. 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 $18 level. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $18.00 - $18.99 | 5.52 |
| At least two layers of turbulence might act as resistance levels above the current price, particularly the one near the $30 level. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $30.00 - $30.99 | 1.73 |
| 2 | $44.00 - $44.99 | 0.54 |
| 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. Only one volumetric minima (valley) is to be found near the $9 level. |
| 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 SGP Common Stock |
| Wednesday, July 01, 2009: We have news on Pitney Bowes Inc., ticker symbol PBI. A significant moving average event has happened. Also, there are breaking events concerning Public Service Enterprise Group Inc. and Pinnacle West Capital Corporation. From the News Archive: (7/1/2009 ) A favorable event happened at The Travelers Companies, Inc.. Meanwhile, bad news came from Fiserv, Inc., MeadWestvaco Corp., and Nicor Inc.. |