C looking very blocky... why?

If you look at the attached interlay chart, it looks more like a cardiogram. What do you think is the reason behind this choppy/blocky looking moves. The traded volume is large, the liquidity is there, so why this look? I am just trying to understand what makes a 15min chart (I think its 15 min since its Yahoo) look like this instead of a more normal fluid 15 min lines.

 

did the paitent die?

seriously, that chart looks normal for a low priced heavy volume stock

 

I guess I am just trying to figure this out. Looks a bit odd.

 

Adjust the volume to the price and you'll notice that there really isn't that much of it.

 

Such an innocuous question to stir such a response from me – I wonder why…. Must be the Season


~397M shares traded today – no small feat to say the least

The first answer to “what makes a 15 minute chart”

Bars/ candles broken into 15 minute time increments…. 15 fun filled minutes of buying & selling, / fear & greed / apprehension & indecision/ excitement & nausea, and loss – for some... and of course profit for a few




On to your bigger question

What do we have here with this chart…


First let us determine what drives price (I’ve said before – buying & selling drives price…but that truly is a bullshit answer).

So what really drives price – money, intent, and acting upon that intent – clearly is the real answer to what drives price…

More folks with the intent to buy, that have the money to buy, and they actually buy = price goes up

More folks with intent to short, that have the money to short, (or longs wanting to take profit), and they actually short/ take profit = price goes down


So what do we (the professional ilk of this craft) do with the chart you’ve posted?


Step 1 – Determine who is in charge, and the nature of their intent

Step 2 – Determine the action we shall take


Answer = No one group is in charge, and being the pros we are, we either sit on our hands or go find better opportunity to make money

As professionals we could give a damn about this or any other stock. We are strictly on the hunt for opportunity and prepared to immediately exploit that opportunity once identified…



It should also be said at this point….

If your analysis leads you to decide one group is in charge…, and you find your analysis to be flawed – EXIT the damn trade and save you capital…. Possibly even reverse your position – but that decision is best left to you


Now being the self professed newb – I feel compelled to bring to your attention that herein lies much “food for thought”

But as in all matters the choice is clearly yours


Regards Sir

RN

 

Thank you Redneck for your detailed response to my innocuous question. Obviously I am not hiding the fact that I am a newb and your explanation is greatly appreciated. I did not look at the volume and I can see how such immense volume would cause such frantic moves. From a day trading perspective price action of this kind is a prime ground to get "killed". :eek:

 

Not exactly. The "flatline" behavior has to do with everybody and their brother wanting to scalp ticks/pennies out of that thing. Ideally, you can buy the bid AND sell the offer and have the market sit still.

 

I wonder why is C a target for this kind of scalping action with soooo many participants. It seems like there are stocks out there that are just as juice and trade in a more "rational" fasion.

 

You'll see action like this on a lot of Yahoo charts on stocks that are very low priced (like less than 5 bucks). It has to do with the fact that a one cent move in the price is actually a fairly high percentage move for that stock.

Best,

Fishaman

 

Well, the good news is it doesnt looks that blocky anymore...