I've listed multiple companies that I think are impacted by this algorithm as we are. But I can't watch them all real-time, nor do I have the desire to determine who they all are.
I wrote a post some time ago saying that once CYDY hit $1.00, it wasn't as effective at reflecting Price Change Parity as it was previously. There was too much demand at that price for a long time. So I picked another company on the watchlist, and that was BLUE. And I now watch them, as well as CYDY.
You were satisfied thinking only that HGEN followed XBI. A "their charts match" kind of deduction.
But there has to be a mechanism by which that happens. And it has to involve a lot of companies. What I termed as 'Price Change Parity' is that mechanism, in my opinion. If you have an alternate explanation for why the charts match for XBI and HGEN, if they still do, I'd like to hear it.
Did you even chart a line for yesterday's S/R projection at $2.87 for HGEN?
I've said many times before that the S/R prices often come back into play in the last 2 hours or so of the session.
I will add to that. It is not uncommon for HGEN's price to vacillate for a bit above and below the projected S/R price, once Price Change Parity is triggered. But I use a 6/25 model. Price shouldn't travel more than six cents away from the projected price, and should make it back to the projected price on or before it finishes the fifth 5 minute bar. If it doesn't, we are likely to trend. Otherwise, we are likely to transition from S to R, or from R to S.
At the least, this model gives me a sense of understanding why our price moves as it does, and I appreciate the context for understanding our market.
I don't feel defensive about this at all, Don. I didn't design the algorithm. I'm quite content just drawing a line at the projected price level at the end of the day, to see how actual price compared to the projected price. It's a more proactive approach to see how we may be manipulated through the day.
