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Friday, December 22, 2006 8:13:35 AM
SFNN example of spd's: spd or single print divergence has many practical uses. Here is just one example of using spd's and how volume has been acting in SFNN recently using uo (ultimate oscillator), adi (accumulation/distribution index), and obv (on balance volume).
In a perfect world each study should shadow price. When price closes upward or downward in a day, so should each study (as shown in the white vertical line). Occasionally the world is not perfect, and divergence results - price prints one way and a study prints in the opposite direction (as seen in subsequent vertical lines). These divergences, if printing in single isolated episodes, are called spd's or single print divergences.
What is significant about most spd's is their ability to suggest change is about to happen. Subsequent price activity beyond the isolated spd is in the direction of the spd itself. If price goes down, the spd is positive and the subsequent price activity is positive...... and vice versa for negative spd's.
What is currently happening with SFNN are repeated spd's. It is a little baffling. Volume is rapidly shuffling about and presenting a chaotic picture promoting looks to trend or price line itself - another story in itself.
This technical observation holds true in most scenarios. When new shares are being distributed this technique is worthless. Other technique need be incorporated to navigate positions. I have been monitoring time and sales reports of SFNN and see no evidence new share sales are ongoing. All said, this information is within my technical limits and ability. New share distribution methods outside my scope may be in play which could make this analysis poop in a bucket.
Anyway..... Here is a daytrading technique you won't find anywhere else. And it aids in determining very near term direction of your current SFNN position.
Dang. Another two cents....... Broke again.
In a perfect world each study should shadow price. When price closes upward or downward in a day, so should each study (as shown in the white vertical line). Occasionally the world is not perfect, and divergence results - price prints one way and a study prints in the opposite direction (as seen in subsequent vertical lines). These divergences, if printing in single isolated episodes, are called spd's or single print divergences.
What is significant about most spd's is their ability to suggest change is about to happen. Subsequent price activity beyond the isolated spd is in the direction of the spd itself. If price goes down, the spd is positive and the subsequent price activity is positive...... and vice versa for negative spd's.
What is currently happening with SFNN are repeated spd's. It is a little baffling. Volume is rapidly shuffling about and presenting a chaotic picture promoting looks to trend or price line itself - another story in itself.
This technical observation holds true in most scenarios. When new shares are being distributed this technique is worthless. Other technique need be incorporated to navigate positions. I have been monitoring time and sales reports of SFNN and see no evidence new share sales are ongoing. All said, this information is within my technical limits and ability. New share distribution methods outside my scope may be in play which could make this analysis poop in a bucket.
Anyway..... Here is a daytrading technique you won't find anywhere else. And it aids in determining very near term direction of your current SFNN position.
Dang. Another two cents....... Broke again.
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