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Re: Themistocles_I post# 45147

Thursday, 05/26/2016 8:01:42 PM

Thursday, May 26, 2016 8:01:42 PM

Post# of 47295
Are you thinking/looking for big guy manipulator accumulation, or retail accumulation. What I post and talk about is retail accumulation.

If StochRSI is low below .2, indicating the stock is over sold and the CMF is high above .25 strong buy pressure. That is a conflict. Just like the opposite would be. Because when lots of retail is buying, then the stock should show over bought.

So what one is seeing is; as price falls and selling takes place, retail is buying it up more then retail is selling it down. This is hard to justify for every buyer, there is a seller.

BUT

The main thing that allows one to see this take place is within the way the 2 support indicators formulas are calculated, over the 14 days, I have the indicators set for.

If trade psychology is normal; as price falls, buy pressure falls, and the stock becomes over sold. If price rises; buy pressure increases, and the stock becomes over bought.

But when you see price fall, but buy pressure continue to remain strong. It means the retail psychology is loading up, not moving out. Accumulation of the falling price, not distribution. More moving in then moving out.

Seeing accumulation only adds comfort if your long or waiting for a retrace reversal. Like seeing price very high and running, with the short interest ratio remaining small, on the big boards. That says retail expects continuation, not enough is enough.

So one can speculate a positive mindset prevails, in both situations. Accumulating a retrace or not shorting a major run.

It's a way to judge/speculate retails real feelings or mindset behind the stocks future. No matter the price direction. And add comfort if seen.


Welcome to my mind!

Success to all
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