Replies to post #114700 on OWC Pharmaceutical Research Corp (OWCP)

[williamjf77]

Because there is a lot of lower wicks on the chart which pushes the multiplier positive I think

[rich pearl]

the cmf is an indicator best used for showing the buying or selling pressure on a stock. it is not meant to be used as a stand alone trading tool. for example, you have to look elsewhere for a confirmation for the trend -- adx, aroon -- or to the a/d, its subset the chiosc, and the obv for the distribution. sto's show selling versus buying, williams is for overbought/oversold. ppo and macd relate to momentum. and so forth. that is why most chartists use at least two or three indicators to reflect on a trading strategy.

generally speaking, to see what's fully happening, you have to look under the hood to the chart. below this post is the 3-month daily.

using just a few of the many indicators on this chart, i'll tell you what i see in a quick reading -- keep in mind no two chartists will necessarily see the same thing. while the chart is a factual representation of what has happened, the interpretation is solely up to the individual.

if you look just to the price, you see a stock trading and riding the fast lines downward. despite the pressure on the ask -- cmf -- the trend downward is confirmed in the adx, the strength of which is shown by the rising signal line -- its the one in black -- and the weak di+.

looking further into this, the sto's, fast and slo, have been traveling in the negative side of the neutral zone. that bespeaks of sellers being stronger than buyers, and this is borne out in the OBV.

thst said, i read the accum/dist and chiosc as telling me that there are buyers here wiling to step up to the plate to take advantage of the selling. todays chart can be seen as a sign that the bottom has already been found and the possibility of a test of the 100ma is in the offing.

of course, other chartists may disagree. my posts, yours to use, lose or abuse

best of trading to ALL

rich