InterDigital Inc (IDCC)

[GoodRAM]

A little more unconventional TA

This is a January 2, 2002 to January 23, 2003 Price Volume Chart that is smoothed by using 5 day moving averages:



The green dot represents today's close. You can see the bearish counterclockwise rotation beginning 8 trading days ago. You can actually see a counterclockwise loop, which if valid is confirmed by last Wednsday's drop in price and volume. However, the remove on day rule prevents this from forming a true sell loop. If you remove the red dot the loop disappears. Additionally, the line closing the loop does not penetrate an uptrend. Nevertheless, this chart illustrates the predictive power of price volume charting.

The bearish line ending today will in all liklihood continue, given the numbers in the 5 day averages. However, Uptics in price on lower volume will continue keep in tact a mild bullish clockwise rotation forming over the last four days.

Price Volume Charting may be less predictive for single securities. This January 10 to 23, 2003 single day chart shows only decreases in price and volume, without any recognizable pattern:



There is some bullish clockwise rotation, but the remove one day rule would nullify any loop that may form tomorrow, unless we had volume in the magnitude of about 900,000 shares.
For a full explanation for Price Volume Charting: http://www.trendmacro.com/a/goodman/keyIndicators/pvCharting.asp

Best,
RAM

"There exists no problem that can withstand the assault of sustained thinking." -Voltaire, Philosophical Dictionary, 1764