MGT Capital Investments Inc. (MGTI)

[Imperial Whazoo]

I always have a 1 minute chart that has volume per minute displaying as a histogram along the bottom. Pretty standard stuff. So, anyway, when this puppy screamed down, IMHO, what was happening was a deliberate attempt to force stops to trigger & thus to accelerate the decline until there are no more stops in place to be triggered.

So, after it stabilized, I get to watch the volume on what look to me like additional tests of the placement (or lack thereof) of stops. Several of them were executed. A wave of selling, followed by a return to buying. You can see the volume as it starts down, bottoms, & curves back up. The volume is precise where the down begins , ends, & the buyers step back in. Just look at the most recent one. Volume jumps at the beginning of the down move, tapers off, and then it returns as buyers return & up it goes again. Volume tells you where the behavior is in the move.... beginning middle or end. Pretty precise. Pretty cool, IMHO.

Basically, with each test of the downside, if there are stops, they trigger, so, as time goes by and all the underbrush gets cleared out from below, the people executing this down side move can measure the trading environment. If you drive everyone to decide to sell by pushing on them with down thrusts, and if you spook people by repeated waves of similar testing, you clear the playing field of anyone who would stand between you and accumulation.

Thats how I see it anyway. I'm watching and I'm willing to wait until somebody declares their intention to begin to buy in. The signal of this beginning is going to be volume.

I'm pretty sure I'm not the only one watching this one closely to see if it is going to goes further down or climb back up.

Volume behavior is going to be the tell.

Just my opinion. Watching and waiting with powder dry to ride it back up, because that's what I think is going to happen sometime in the next month.

Oh, and yeah, you read that correctly.... I said MONTH. No point in getting in a hurry, LOL.

Imperial Whazoo