Spydertrader's Jack Hershey Equities Journal II

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In GROW @ 27.08

And out again, realising volume was going nowhere. Bit of a misstep there, methinks...

The daily looks ok, but the stock has travelled alot in the last few weeks. Volume is nowhere near Unusual...
 
On the Tucson videos (as well as Spyder mentioning it somewhere I think) reference is made to DOM patterns. I've looked and looked and can't find anything on this. If anyone has an idea on where to begin studying I'd be ever so thankful.

Bob
 
I'm a bit late to the game, as I had things to attend to @ open this morning, but I'm in EZPW @ 36.00

closed second entry on GIGM for essentially a wash

closed TIE MOC yesterday for 27.21 for around 2% gain

it was a really good MOC order fill, took almost 5 minutes to post though, I was getting worried.
 
Quote from bundlemaker:

reference is made to DOM patterns
More...

DOM is used as a fine control for trading futs mostly….

The patterns consist of

1 Translation - price moving across bid ask pairs (long translation / short translation)

2 Residence – Price resides on one bid/ask pair (most likely will turn into a Two Pair)

3 Two Pair – price bounces back and forth between two pairs of bid/ask (look for pair that sticks)

4 Two Pair Spike – a spike occurs while in a two pair

The best experience is to watch it happen as things role along.
 
EZPW had me really confused this morning. I had it on my 'long' list, but it really travelled southward quickly before regaining, and heading north.

I have seen when prices bounce off moving averages or trendlines before, but only on a daily chart, not realtime. Has anyone seen this before? Does it represent a clear rejection of a trendline/MA break, or is it something else?

Volume was heaving going in both directions also....
 
Referring to the daily time frame this is called a "spring" or "bag-holding" in Wyckoff terms. Note the bar on 8/10 set a support level of ~$34 and this level was then tested during the next few days on lower volume before the rally to the Sept high.

This morning price dropped slightly below that level and demand immediately overcame supply resulting in the bullish response.

So to answer your question, IMO this action was a result of testing the horizontal support line drawn off the 8/10 low of $34.10 (where I assume bids were resting below the market).

Also notice the late June action where price attempted to breakout above the May high, failed, then tested this same level before launching.

The reverse of the "spring" action is called an "upthrust" which is nicely illustrated on 7/20. The attempt to break out above the $44.30 resistance level set in early July was slammed back into the trading range where it re-tested the resistance on the next rally and sunk due to distribution.

Sorry to get so wordy.

Rick
 
Quote from R/R:

Referring to the daily time frame this is called a "spring" or "bag-holding" in Wyckoff terms. Note the bar on 8/10 set a support level of ~$34 and this level was then tested during the next few days on lower volume before the rally to the Sept high.

This morning price dropped slightly below that level and demand immediately overcame supply resulting in the bullish response.

So to answer your question, IMO this action was a result of testing the horizontal support line drawn off the 8/10 low of $34.10 (where I assume bids were resting below the market).

Sorry to get so wordy.

Rick
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Thanks for the excellent response. It makes the price action of today seem alot clearer, and in line with my thoughts about price rejecting a trendline/MA breakout. However I didn't go far enough back on the chart to identify the point on the 8/10.

I'm new to this type of analysis, so I really appreciate the insight.

Cheers,

Adrian
 
Adrian: Glad my thoughts were helpful. I edited my original post to add some other observations on EZPW - don't know if you saw those since they weren't contained in my quote in your response.

You probably noticed the same type of action (price testing and slightly penetrating previous support) on the daily charts of a few recently mentioned stocks: ANDE, BTUI, NEU, TIE.

I'm brand new to this JH/Spyder method as you can tell from my number of posts.

I like the way PV action is used here - but it seems like the universe and hot list has lots of weak stocks. I guess this is due to tenure or since they were previous leaders and still manage a high RS ranking from stocktables.com.

There is alot of material to go through and I've just started.

Rick
 
Hi Gents, I'm BigMoose. Definately not JH!

Just an almost retired aerospace engineer, getting ready for trading full time.

My summary of JH methods is here on my kids server: http://www.mtggraphics.com/temp/BigMooseHersheySummaryV5.doc

I have been adding to it, but kept the old version number, so you guys could keep snagging it, if it is useful to you.

Sorry I lagged on responding, am consumed lately caring for an ailing 86 year old mother, and her very ill 88 year old sister. Here family comes first, investing second...

Good trading to you!
 
Rick, It would be great if you threw up a chart with your analysis. That way it would be archieved for all the folks in the future that read this thread. Very nice analysis, BTW.

...just a thought.
 
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