AI
Monday, June 08, 2009 6:11:49 PM
EXPU - The Triple Headed Bull
by ClayTrader
Well folks, today's chart is what I like to call a "triple headed bull. These are some of the best charts you can come across as they "set the stage" for very exciting times to come. What makes the chart a triple headed bull? Let's dig in and go over the chart.
The first head of the bull is the volume. As you look into the gray box, you can see that the previous day's volume bars do not come remotely close to reaching that of today's volume. Volume is a great indicator for one reason alone: interest. With today's volume, it is clear that there was a significantly higher amount of volume than what previous days have had. On the other note, just because there is a lot of volume doesn't necessarily mean the chart is bullish. This is where the next two "bull's heads" important.
By looking into the yellow box, you will see what really makes this chart bullish. In some cases, a chart will have high volume, but the price will either go sideways or worse yet, down. In EXPU's case, the chart got a bullish reaction to the volume and was up over 30% on the day - not too shabby! One of the great correlations in technical analysis is when you have the combination of increasing volume + increasing share price - these two factors are what charting is all about. The third head is just the icing on the cake.
For the previous two and a half months, the chart had taken the form of a pennant pattern (could also be called a wedge or symmetrical triangle). These patterns represent an increase in share price over time (higher lows), but at the same time, show a lower share price over time (lower highs). Eventually, the patterns lead to a point where the bulls and bears need to decide who wins. Looking at the tan box, you can see who won in today's decision: daaaa bulls!
To summarize, not only did the chart get the combination of increasing volume and share price, it also was able to break to the upside of its chart pattern. Three bullish things occurring for the chart today!
Taking a look at the indicators also show the bulls are showing up. The FULL STO has made an exceptional recovery to back above 50, and from this point on, a great way to monitor the strength of the bulls is via the ability of the STO to remain above 50. The other indicator to keep a close eye on is the famous MACD. Although not quit there, the MACD is preparing to cross-over (to the upside) its signal line, which in the land of chart is always an event you want to see happen.
Overall, the chart is looking very strong, and the remainder of the week should be very interesting.
by ClayTrader
Well folks, today's chart is what I like to call a "triple headed bull. These are some of the best charts you can come across as they "set the stage" for very exciting times to come. What makes the chart a triple headed bull? Let's dig in and go over the chart.
The first head of the bull is the volume. As you look into the gray box, you can see that the previous day's volume bars do not come remotely close to reaching that of today's volume. Volume is a great indicator for one reason alone: interest. With today's volume, it is clear that there was a significantly higher amount of volume than what previous days have had. On the other note, just because there is a lot of volume doesn't necessarily mean the chart is bullish. This is where the next two "bull's heads" important.
By looking into the yellow box, you will see what really makes this chart bullish. In some cases, a chart will have high volume, but the price will either go sideways or worse yet, down. In EXPU's case, the chart got a bullish reaction to the volume and was up over 30% on the day - not too shabby! One of the great correlations in technical analysis is when you have the combination of increasing volume + increasing share price - these two factors are what charting is all about. The third head is just the icing on the cake.
For the previous two and a half months, the chart had taken the form of a pennant pattern (could also be called a wedge or symmetrical triangle). These patterns represent an increase in share price over time (higher lows), but at the same time, show a lower share price over time (lower highs). Eventually, the patterns lead to a point where the bulls and bears need to decide who wins. Looking at the tan box, you can see who won in today's decision: daaaa bulls!
To summarize, not only did the chart get the combination of increasing volume and share price, it also was able to break to the upside of its chart pattern. Three bullish things occurring for the chart today!
Taking a look at the indicators also show the bulls are showing up. The FULL STO has made an exceptional recovery to back above 50, and from this point on, a great way to monitor the strength of the bulls is via the ability of the STO to remain above 50. The other indicator to keep a close eye on is the famous MACD. Although not quit there, the MACD is preparing to cross-over (to the upside) its signal line, which in the land of chart is always an event you want to see happen.
Overall, the chart is looking very strong, and the remainder of the week should be very interesting.
AT FIRST EVERY TRULY GREAT ACCOMPLISHMENT, WAS CALLED IMPOSSIBLE
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http://investorshub.advfn.com/boards/board.aspx?board_id=11080
ALL POSTS ARE STRICTLY IN MY OPINION.
