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. |
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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 ZAP shares. |
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Blue bars depict the Volumetric Profile for various price levels of Zapata Nevada. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. The Volumetric average at $1 is below the Secular average at $3. This is a very un-usual condition. Almost no volumetric support exists underneath the current price. |
| To the upside, a layer of potential resistance hovers around the $7 level. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $7.00 - $7.99 | 0.33 |
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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. Only one volumetric minima (valley) is to be found near the $6 level. |
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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 ZAP Common Stock |
| Friday, March 19, 2010: We have news on L-3 Communications Holdings, Inc., ticker symbol LLL. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Mylan Inc. and TECO Energy, Inc.. From the News Archive: (3/18/2010 ) Bad news came from MicroSoft, General Electric, Sempra Energy, and Walmart. |