TA experts: can you explain this?

C

Camilo99

Hi all

I have been following this stock and have seen very unusual activity lately. Check out this graph of what happened this morning. Can you explain what could have happened here?

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Camilo99 said:
Hi all

I have been following this stock and have seen very unusual activity lately. Check out this graph of what happened this morning. Can you explain what could have happened here?

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Yes. NOISE!

Most of what any market/issue does is just noise. TA is all about figuring out what is likely NOT noise and trading it appropriately.
 
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Thanks for your reply Scataphagos. Noise means you can't discern anything from it, but that is not how markets operate. At the first price change with low volume, few traders were willing to sell (or buy), so with little volume price went down. But later on, a huge lot was traded, and then suddenly a lot of traders (apparently) were willing to buy. How come that happened?
 
one do not have be an expert to explain this :)

there is an old saying: do not believe everything you see

so how do we know that 56.8K trade was not done earlier, and posted later ?

suggestion : do not trade this instrument in this time period, u (or anyone in fact) can get slaughtered here
 
Its 100% noise from the retail level and worse yet for chart or price readers, its all past noise you are looking at. This doesn't mean profits can't be made.
 
Profits and losses are made based on PRICE not on volume. With the entryPRICE and the exitPRICE you can calculate your profits or losses.
If there is a reaction it will be visible in the price, so why bother about volume? Volume does not say at all if buyers/sellers want to pay more or less. Price tells you that. Volume is only important to see if you can take or dump the volume you want to trade. Never trade anything with low volume.
 
Camilo99 said:
Thanks for your reply Scataphagos. Noise means you can't discern anything from it, but that is not how markets operate. At the first price change with low volume, few traders were willing to sell (or buy), so with little volume price went down. But later on, a huge lot was traded, and then suddenly a lot of traders (apparently) were willing to buy. How come that happened?
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Markets bounce both up and down (+ top out and bottom out) on both light and heavy volume... doesn't mean what many say it does. Besides, you're talking about a $.40 move in a $40 stock??
 
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