What I like abt a stand-off...ie Buyer vs Seller deadlock and price not moving. Example, Immediate. Buyer at 50c and Seller at 50.5c with total buy volume queue at 750k and sell volume queue at 700k with seller queue up to 56c. When the unseen buyer (which is not in the buyer queue decides to take the whole seller queue of 700k volume upto 56c, it will leave a void between immediate 50c buyer and 56c above seller temporarily. This happens as a GAP up. If gap up doesn't hold, it will fill up the void gap. However the focus is not abt filing the void but the fact there was an intent when someone takes the total seller volume on the table. That's why it always desirable when gap up happens.
There are 2 scenarios here 1. Mother at 66c deadlock with 4.3M volume on seller queue. 4.3Million shrs is not a lot by recent L&G volume performance up to 20/30 Million. So if a gap up happens where buyer takes all the potential is ending 68.5c. When this happens, the signal is for buyer to get ready again 2. However in the second scenario, what you need to watch is the mother price drops below 65c and whether the son follows. This will be third day son is holding/defending and if mother drops but son continue to hold today at 52.5 and above, you can expect son to indicate self reliance.
What does it mean? At whatever cost, son base is 57c and resistance is 60cents ( psychological resistance) This 60 c for son is still reliant to mother even if son display they are independent at this stage ( if they continue to hold above 52.5c). If this case happen, son will still wait for mother below 60c and mother will rebound !!
if judging by the price movement based on pass few months, the support will be at 0.65 and will hibernate for about 2 or 3 month.. oh well, keep it at fridge and looking for other potential counter.. any recommendation?
Wow...Mother to son ratio 1:30 The reason for the high ratio is son investor/trader refuse to budge at this point ie buyer and seller holding ground You guys know what to do....
What a lousy counter.The counter is always at that same price and the big boss is doing nothing. I have hold on to this share for more than 5 years already and still going nowhere....
Investment need patience,don let it to control your mind and emotion,only then you will gain big profit,cheers :) I bought some and continues hold without care how people comment,as long as I did my home work about this company and i know it is worth for me to wait :) Cheers.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
tksw
12,839 posts
Posted by tksw > 2014-08-17 20:26 | Report Abuse
Waaaa...xcu843, you are a big player! One counter day day earn 2k-3k!