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Replies to #22228 on lowtrade
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lowtrade

06/01/11 10:50 AM

#22230 RE: IronWorker512 #22228

To check this you need to read filings. The problem is many pinks don't file and many OTC file late.

The dead give away for big money involvement is if the company announces funding. To research share structure you have to see info about restricted, warrants, the O/S A/S and the like in filings. Read this post, it may help;http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63423761

As for what in the charts may indicate a move coming you need to look at accumulation. If there is accumulation, without much price increase, there is usually insiders & friends buying before VCs manipulate a run. This is all educated guessing though.
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lowtrade

06/01/11 12:15 PM

#22231 RE: IronWorker512 #22228

Said you need to look for accumulation, but not how.

I use the CMF volume indicator for this. Because it has a zero line and that line will tell if the daily volume is above or below the average you set the parameter at. 20 day is the normal setting, but I like 14 day because I trade a 2 week cycle usually.

If you see strong selling or buying pressure in the CMF above or below .25 without a price climb or fall. That shows someone is accumulating with stealth. Yes selling. Why would I think someone was accumulating with strong selling. Logic says they are dumping.

With every seller there is a buyer. And the darkside loves to buy up all the bid stack before the ask. When someone is accumulating they buy both directions. So strong selling pressure also would show accumulation. Maybe more so, if the stock price is steady, not changing.