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 WMB shares. |
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Blue bars depict the Volumetric Profile for various price levels of Williams 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 $14. The strongest is near the $20 strata. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $20.00 - $20.99 | 2.13 |
| 2 | $14.00 - $14.99 | 1.71 |
| 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 | $26.00 - $26.99 | 0.88 |
| 2 | $30.00 - $30.99 | 1.10 |
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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. $12 is the most significant of several valleys (i.e. negative peaks) in today's profile underneath the current price for WMB. |
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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 WMB Common Stock |
| Thursday, March 11, 2010: We have news on Southwestern Energy Company, ticker symbol SWN. A significant moving average event has happened. Also, there are breaking events concerning Philip Morris and LoJack Corp. From the News Archive: (3/10/2010 ) Bad news came from Omnicom Group Inc., Best Buy Co., Inc., Ameren Corporation, and Avon Products, Inc.. |