Plastic2Oil Inc (PTOI)

[the big guy]

In charting terms, all volume means is that it is likely to continue in the direction that it is headed, be it up or down. It is a basic indicator. There are a couple of statistical indicators that use volume to attempt to predict price movement. A couple are the RSI (Relative Strength Index) and the MFI (Money Flow Index). Both vary between 70 (Overbought - gonna go down) and 30 (OverSold - gonna go up). If you look them up you will see that they use volume and Price (where in the trading range the action happened).

I use volume and these indicators to help with timing. If a stock goes up for 3 days in a row on news... and the volume on the last day of the 3 is low... maybe a good idea to wait for a pullback.. likewise the other way. And I will wait until the RSI/ MFI indicates a buying or selling opp..

Here is the chart for JBII:



I have found that the MFI for these OTC stocks is predictive. Not sure why. Usually, these indicators are useless because by the time they signal a change in price movement, the movement has already occurred.

The latest drop was forecast by the MFI clearly. Then the price remained level, while the MFI started to climb again. in the absence of all else, I would have said that the MFI would become overbought again (70) and then signal another potential drop.

In the last few days it has changed direction. I can only assume that it is because of the impending earnings report... we have speculation on earnings...