Replies to post #258780 on ERHC Energy Inc (ERHE)

[TOB]

Yes that's right, an ERHE rally pattern has higher highs and higher lows.

For example, in the last 4 days we saw a higher high at .14, and a higher low at .10 (the previous low was at .0840)If this mini-rally continues that was the first leg.

For example, looking at the ERHE rally of 2009 on a weekly chart (below) we see a series of higher highs, which I have marked with red arrows, and higher lows, which I have marked with green arrows.

Notice that when the rally was over, we then saw lower highs, which I marked with two yellow arrows, and lower lows, which I marked with two blue arrows.

The first of these were a warning sign that the up-trend rally was over and a down-trend sell-off was beginning. (There was one higher low during the initial decline, but it was followed by a much lower high and a much lower low. The subsequent dead-cat-bounce rally in 2010 wasn't confirmed with a higher low, and was followed by a plunge.)

[TOB]

Yes, you will notice I put 'should' in single quotes indicating that while the close of the regular ERHE session showed a lower close for the day, there was a large order reported three minutes later after the close. 400,000 shares at .13 Thus the daily candle was misleading.

ERHE had 400,000 shares bought at .13 three minutes after the close of the day session.

So ERHE effectively opened and closed up from yesterday, on increasing volume which is the highest in 3 months. We see a big red candle on the chart below, but it 'should' be a doji.
We see a big red candle on the chart below, but it 'should' be a doji. -TOB

Thus my using the qualifiers "effectively" and "should" indicates that we see otherwise on the standard chart, but that it does not tell the full picture.

400,000 shares at the opening price 3 minutes after the close was a significant event.

Note also that the OTC:BB is an over the counter bulletin board. Thus we don't often don't see our trades on the charts right away, or reflected in the Bid/Ask/Last. That trade 3 minutes after the close could have been executed prior to the close, but then reported to the bulletin board minutes later.

I've often made buys that I didn't see on my real-time charts until they were reported, some time after they were executed. The OTC:BB does not have the same behaviour as a normal real-time exchange.