Green Cures and Botanical Distribution Inc (GRCU)

[Odessa99]

Something should be noted regarding the Claytrader charts (which, incidentally, I personally find very helpful, along with his analysis).

As most know, at times he'll use a 60 minute timeframe for the chart intervals, and at other times he'll use the daily timeframe. For the most recent GRCU chart where he performed analysis (which he posted yesterday evening and this morning), his decision was to use the 60 minute timeframe.

The decision to publish a chart representing 60 minute intervals as apposed to the daily time frame totally changes the support or resistance values represented by the 50 period moving average and the 200 period moving average.

And as we know, those particular moving averages are considered highly important (in terms or providing key support and resistance levels) by those following the charts. As you can see below in the charts I've provided, the moving avg support levels are different (the 50 period moving avg is represented by the purpole line on each chart). On the 60 minute interval chart below, we've broken below the 50 period simple moving avg, but on the daily timeframe chart, we are holding (at the moment) above that level. This is why the chart timeframe interval becomes an important factor in assessing the key support and resistance.

I just wanted to also note that there's nothing improper about making the decision to use one chart over the other, but that choice does impact the perception of the strength of the stock.



As always, simply my opinion.

GRCU