The volume required for a stock to fall a certain percentage on a 1x1 scaled graph is approximated by the formula: V2=V1*((M2-1)/(M1-1))*(M1-1-2ln(3/(M1+2)))/(M2-1-2ln(3/(M2+2))) V1 is the volume on the left side of the chart M1 is the slope of the left side M2 is the slope of the right side of the selloff V2= is the volume required for the selloff the formula is derived by taking the integral of the energy level the energy level is a function of price, slope, and volume for a time interval and the energy of the left hand side must equal that of the right. This formula explains why a stock like CSCO or INTC doesn't fall more than a penny when someone instantly sells 1000 shares
could you elaborate on the "volume on the left side of the chart"? maybe do an example problem with this formula so I can see the variables put in the right places. that would be awesome if you could make that happen.
What are you talking about? First you're a fundamental investing guru, then a daytrading guru, and now I don't even know...
Hmm. Or could it just be that these stocks are highly liquid? Keep doing what you do... Whatever it is...
nearly every observable volume price relationship can be explained through manipulation of the formula this is the closest to a 'formula' for the stock market A high volume, high density, selloff on the right hand side of the chart will penetrate a weak left hand side support even if the volume on the right hand side is much less than the total volume on the left hand side.