Forum Archive Index - December 2001

["andrew cottingham" <arco@adinfinitum.co.nz>]

WAM - Equivolume
Andrew
----- Original Message -----
From: jerrold poh <jerm@musician.org>
To: <sharechat@sharechat.co.nz>
Sent: Tuesday, December 18, 2001 11:09 AM
Subject: Re: [sharechat] WAM Chart + EquiVolume Chart Request


> > Looking at a WAM chart it appears to be quite similar to TEL.  I can't
> > see how to copy from Henley (any tips would be much appreciated) but I
> > wondered if our resident expert Phaedrus could provide an update.  The
> > chart I am looking at shows price action reaching the intersection of
> > a downward trend line which was started on 19/6, was confirmed on
> > 25/7, 3/8, 6/9, and 11/12 and the recent uptrend line starting 25/10
> > and confirmed 3/12 (all dates are approximates).
>
> I know this email is directed at Phaedrus, but I wouldn't mind giving it
> a shot (feel free to criticise / correct me :) ).
>
> Just to re-iterate your point, yes, I can see the downtrend you have
> "drawn" :), and for the convenience of readers, have posted it on the
> board (as wam01.gif), and like you said, this chart has a strange
> similarity to the telecom chart of late.
>
> It all looks good, but the thing that worries me though is that there
> isn't much volume support for the uptrend.  If you have a look at
> wam02.gif, I've got an indicator which measures accumulation /
> distribution.
>
> This indicator goes up when there's a rise in price, and high volume
> (which is good, because people are buying, and that's what's making the
> price go up), and it goes down when the price rises, and there's low
> volume.  (conversely, it also goes down when the price falls, with
> matching high volume, and when the price falls, and matching low volume).
>
> If you look at the indicator, it shows that the "momentum" around the
> stock isn't very high at the moment, (shown by the indicator going
> nearly flat).  People are just basically "trading" the stock with each
> other at whatever price.  There's no big hype to buy, or sell the stock,
> and I think people are both happy to buy or sell this stock around this
> price range (efficient market theory?).
>
> Actually, I remember some talk of equivolume on this board awhile ago,
> and wouldn't mind if someone posted a chart of wam in equivolume, just
> to see how strong this stock is trending atm.  I'm guessing it would
> make a good complement to the accumulation / distribution indicator.
>
>
>
> Jerrold.
>
>
>


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WAM Equivol.jpg

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