Hannover House Inc (HHSE)

[Nikodemos]

Interesting Annotated HHSE ADX Chart:



Click on chart for expanded version.

For those who don't know, the ADX Tech Indicator has THREE lines:
[] Red
[] Green
[] White

Each line is a visual representation of the Math & DATA a stock generates during it's day-to-day buying & selling; most often relative to price, volume & trends. https://www.investopedia.com/terms/a/adx.asp

ADX (Average Directional Index) Technical Indicator's 3 lines are:
1. RED = reflects Selling Pressure
2. GREEN = reflects Buying Pressure
3. WHITE = reflects the STRENGTH of TREND

So a trend is MOST RECOGNIZABLE when ONE line is at-or-near HIGHS, & the OTHER is at-or-near LOWS. Why? Because those conditions represent EXTREMES. Meaning, IF the Selling Pressure is at-or-near a HISTORIC HIGH...& the Buying Pressure is in direct opposition to it (at-or-near historic lows), then it would be OBVIOUS that the trend describes distribution (high selling environment) in a stock: HIGH volume of "selling pressure" & little "buying pressure" will do this.

Similarly, if the ADX BP (Buying Pressure, or GREEN line) was at or near HISTORIC HIGHS, & the SP (Selling Pressure, or RED line) was at or near LOWS, then the Technical Indicator would be expressing an accumulation, or BUYING environment or trend.

The WHITE LINE then, measures the STRENGTH of this trend. REGARDLESS of TREND it measures ONLY the STRENGTH of whatever trend currently exists.

If ONE were to look at the TREND currently in HHSE, they'd find a HIGHLY BIASED Selling Environment.

Based upon:
[1.] The historically HIGH SP
[2.] The historically LOW BP
[3.] & the historically HIGH ADX

But NOT ONLY THAT.

If one were to look CAREFULLY at the CHART, they'd note that the ADX (White Line) has NEVER EVER BEEN HIGHER...NEVER, during the entire length of the chart (since Jan 2012).



And NOTE the subsequent price action & correction (in the body of the chart). But first, start with the NUMBERS in the ADX as labeled: 1, 2, & 3,....which are highlighted by yellow circles:

1 = The first time the ADX (White) ran HIGH with SP over BP...
& the chart-body (highlighted by the yellow elipse) shows the corresponding price-action correction.

2 = The second time the ADX ran HIGH. With nearly the same conditions as in #1 (only slightly HIGHER ADX) & the price CORRECTION.

3 = What is going on RIGHT NOW whereas the ADX is concerned. Only the ADX has NEVER BEEN HIGHER. Meaning the chart set-up & indicator reflects an EVEN GREATER disparity as 1 & 2. The TREND is stronger.

Historically, & this is where CHARTS HELP us spot TRENDS before they take place, the ADX has never been higher. So it is REASONABLE to assume that a price CORRECTION is probable (as we've seen in the past).

AND, HHSE has NOT enacted a NO DILUTION POLICY since 2015. The company, according to the independent (3rd-party) ungagged Transfer Agent, has NOT distributed shares since 2015.

So what does this mean? Technically, chartists use probabilities when determining how & when to enter an investment. The conditions here are STRONGLY SUGGESTIVE & in favor of taking a LONG position in the stock.

1. Because there is NO DILUTION.
Therefore there is no inventory, of shares, or overhang.

2. Because the BUYING PRESSURE has NEVER BEEN LOWER. And is not likely to continue to go lower. Based upon probability alone. Meaning, it is PROBABLY MORE LIKELY to GO HIGHER, than it is to GO ANY lower.

3. Because the same can be said about the SELLING PRESSURE. Namely, it is NOT LIKELY to go MUCH HIGHER & is MORE LIKELY to fall back to it's "normal range" rather than continue going ANY HIGHER.

4. And because OUR ADX (White Line) confirms that IT (itself) is AT HISTORIC HIGHS,....& therefore is MORE LIKELY to fall back to normal levels than CONTINUE setting NEW HIGHS!!


Part of the REASON HHSE might be seeing a HISTORIC HIGH in the ADX, is because there is NO DILUTION. So there isn't much SUPPLY as there may have been HISTORICALLY.

If we ADD "Getting Grace" (set to OPEN in Theaters TOMORROW), "Death House", "Daisy Winters", etc., into the mix, it is reasonable to assume that shareholders on THIS STOCK are holding onto their shares BECAUSE they SENSE an opportunity for a HIGHER VALUATION.

And FINALLY, I did notice that the stock has also performed well as it went into CANNES FILM FESTIVAL. And, this year, HHSE may be thought to have BETTER TITLES to sell & distribute than ever before (imv) although I am not aware of whether or not HHSE intends to attend as they have the past two years!

Anyway, I hope that helps explain the chart a bit. GL to those holding HHSE shares. I decided to put in a bid or two as I continue my DD here & the CHART is the REASON WHY along with "Getting Grace", the International RIGHT to "Death House", the likelihood that "Daisy Winters" gets Netflix, Redbox, into Walmart & other retailers HHSE has had success with in the past, etc. AND the ABSENCE OF DILUTION which is a RARITY in the OTC!!


GL2A

$HHSE