Stock Trading & Investing Using Volume Price Analysis: Over 200 worked examples by Anna Coulling

Author:Anna Coulling [Coulling, Anna]
Language: eng
Format: azw3, pdf, mobi
Publisher: Marinablu International Ltd
Published: 2020-12-27T16:00:00+00:00

MSFT monthly: Sept 2015 - Nov 2017

A well known stock, and in this example we see how the market makers step in for an extended period to support Microsoft and buy during the congestion phase before building the next phase of the campaign higher.

The rally here began in late 2015, and as the stock sold off in January 2016, so the market makers stepped in to buy, duly repeating this in February on a narrow spread down candle. And further confirmed in June with strong buying once again prior to launching the price higher in July on supportive volume.

This trend higher has then developed in a calm and measured way in a series of neat steps. There is no volatile price action here, and what is perhaps most interesting is the price action of October 2017. Here we see a wide spread up candle, but the volume looks rather low and perhaps not in line with what we should expect. After all, if we consider the price spread and volume of October 2015, this was an equivalent candle in terms of the price action, but note the volume - it is almost double that of the October 2017 candle. So an interesting contrast two years apart!

As a longer term investor, this could be the first warning signal of danger ahead. This is not to say Microsoft stock will reverse immediately - it will not. However, as each monthly candle builds this may reinforce this initial signal and confirm that we are indeed moving into a possible congestion phase, and perhaps a selling climax in the longer term. Time will tell, and all will be revealed and confirmed in the charts in 2018.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.