If you look at the attached interlay chart, it looks more like a cardiogram. What do you think is the reason behind this choppy/blocky looking moves. The traded volume is large, the liquidity is there, so why this look? I am just trying to understand what makes a 15min chart (I think its 15 min since its Yahoo) look like this instead of a more normal fluid 15 min lines.
C looking very blocky... why?
- Thread starter The newb
- Start date
Adjust the volume to the price and you'll notice that there really isn't that much of it.
Such an innocuous question to stir such a response from me â I wonder whyâ¦. Must be the Season
~397M shares traded today â no small feat to say the least
The first answer to âwhat makes a 15 minute chartâ
Bars/ candles broken into 15 minute time incrementsâ¦. 15 fun filled minutes of buying & selling, / fear & greed / apprehension & indecision/ excitement & nausea, and loss â for some... and of course profit for a few
On to your bigger question
What do we have here with this chartâ¦
First let us determine what drives price (Iâve said before â buying & selling drives priceâ¦but that truly is a bullshit answer).
So what really drives price â money, intent, and acting upon that intent â clearly is the real answer to what drives priceâ¦
More folks with the intent to buy, that have the money to buy, and they actually buy = price goes up
More folks with intent to short, that have the money to short, (or longs wanting to take profit), and they actually short/ take profit = price goes down
So what do we (the professional ilk of this craft) do with the chart youâve posted?
Step 1 â Determine who is in charge, and the nature of their intent
Step 2 â Determine the action we shall take
Answer = No one group is in charge, and being the pros we are, we either sit on our hands or go find better opportunity to make money
As professionals we could give a damn about this or any other stock. We are strictly on the hunt for opportunity and prepared to immediately exploit that opportunity once identifiedâ¦
It should also be said at this pointâ¦.
If your analysis leads you to decide one group is in chargeâ¦, and you find your analysis to be flawed â EXIT the damn trade and save you capitalâ¦. Possibly even reverse your position â but that decision is best left to you
Now being the self professed newb â I feel compelled to bring to your attention that herein lies much âfood for thoughtâ
But as in all matters the choice is clearly yours
Regards Sir
RN
Quote from Redneck trader:
Such an innocuous question to stir such a response from me â I wonder whyâ¦. Must be the Season
~397M shares traded today â no small feat to say the least
The first answer to âwhat makes a 15 minute chartâ
Bars/ candles broken into 15 minute time incrementsâ¦. 15 fun filled minutes of buying & selling, / fear & greed / apprehension & indecision/ excitement & nausea, and loss â for some... and of course profit for a few
On to your bigger question
What do we have here with this chartâ¦
First let us determine what drives price (Iâve said before â buying & selling drives priceâ¦but that truly is a bullshit answer).
So what really drives price â money, intent, and acting upon that intent â clearly is the real answer to what drives priceâ¦
More folks with the intent to buy, that have the money to buy, and they actually buy = price goes up
More folks with intent to short, that have the money to short, (or longs wanting to take profit), and they actually short/ take profit = price goes down
So what do we (the professional ilk of this craft) do with the chart youâve posted?
Step 1 â Determine who is in charge, and the nature of their intent
Step 2 â Determine the action we shall take
Answer = No one group is in charge, and being the pros we are, we either sit on our hands or go find better opportunity to make money
As professionals we could give a damn about this or any other stock. We are strictly on the hunt for opportunity and prepared to immediately exploit that opportunity once identifiedâ¦
It should also be said at this pointâ¦.
If your analysis leads you to decide one group is in chargeâ¦, and you find your analysis to be flawed â EXIT the damn trade and save you capitalâ¦. Possibly even reverse your position â but that decision is best left to you
Now being the self professed newb â I feel compelled to bring to your attention that herein lies much âfood for thoughtâ
But as in all matters the choice is clearly yours
Regards Sir
RN
Thank you Redneck for your detailed response to my innocuous question. Obviously I am not hiding the fact that I am a newb and your explanation is greatly appreciated. I did not look at the volume and I can see how such immense volume would cause such frantic moves. From a day trading perspective price action of this kind is a prime ground to get "killed". :eek:
Quote from nazzdack:
Not exactly. The "flatline" behavior has to do with everybody and their brother wanting to scalp ticks/pennies out of that thing. Ideally, you can buy the bid AND sell the offer and have the market sit still.
I wonder why is C a target for this kind of scalping action with soooo many participants. It seems like there are stocks out there that are just as juice and trade in a more "rational" fasion.