Chapter VIII: Volume Stratification Analysis (or VSA) follows price behavior in relation to historical volumes of X 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 is nothing more than the cummulative volume according to price range. The red bar marks the price range corresponding to the current price of X shares. |
| Prev. Co. | Next Co. | |
| ||
|
Blue bars depict the Volumetric Profile for various price levels of United States Steel 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 $34 level. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $34.00 - $34.99 | 4.85 |
| Several minor strata of volumetric turbulence could exert resistance against price appreciation, most notably, the peak at $102. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $102.00 - $102.99 | 0.89 |
| 2 | $138.00 - $138.99 | 0.27 |
| 3 | $166.00 - $166.99 | 0.23 |
| 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. No major Volumetric Minima exist to support the current price |
| 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 X 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 Convergys Corporation and Coach, Inc.. From the News Archive: (3/11/2010 ) A favorable event happened at Zimmer Holdings, Inc.. Meanwhile, bad news came from Fluor Corporation (NEW), Automatic Data Processing, and Home Depot. |