Quote from stock_trad3r:
lets now assume the following conditions:
As a stock trades from t1 to t2 (time) it accumulates energy. If there is no price change there is no energy. If it trades lower, there is negative enrgy. If it trades higher positive energy is created.
if the volume is zero, there is zero energy. Higher volume equals more energy.
if the slope (another variable) is 0 there is no energy. A greater slope equates to more energy.
With these perameters an equation can be developed for energy
So you are discovering that you should be selling since based on the above the market has negative energy, aka momentum?