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Re: Baseline post# 92147

Tuesday, 03/16/2010 11:10:09 AM

Tuesday, March 16, 2010 11:10:09 AM

Post# of 375420
When the chart is created it can't distinguish on who is selling or who is buying, it just interprets the data. Why you might see the indicators going up when the price is falling is traders jumping in at somewhere close to the point that they consider the bottom. What can happen then is that they misjudged by a day or 2 and bought in a little bit higher than the "bottom price". It's all good though, your still in at a nice low point. Actually the same thing can happen on an upswing if traders start to bail a day or 2 before it hits the "top price". This stuff all tends to work a little better with listed stocks that have a reliable track record. Pennies are pretty volatile and influenced by all kinds of crazy stuff.