What does this price behaviour mean?

Discussion in 'Trading' started by jr07, Dec 1, 2009.

  1. jr07


    When a stock's candlestick chart behaves in the fashion attached, what does it mean? In case you can't see the attachment, it's when price seems to be stuck for a while in a 1cent range, with candles of the same size printing for minutes and minutes as if there where two large computers one with buy orders and another one with sell orders at each of these prices.

  2. consolidation prior to a breakout? it would be nice to see more of the volume history.
  3. jr07


    Here's another example with volume. It's a 2min chart and see how price was 'stuck' between 9.99$ and 10.00$ for almost 2 hours between 12:15pm and 2pm.

    What does this mean? Not enough participants?

  4. i dont think it was due to a lack of participants. more like the market agreed upon a price for a two hour time-span. looks like consolidation prior to a downwards breakout.
  5. solidarity in numbers
  6. MTE


    I'd call it ping pong. :)
  7. PPT


    Oh you n00bies...

    If you read my book you would know that it means 100% of the time that prices will go UP.

    such a famous pattern I write about, only found in my book and nowhere else.

    If you have my book, refer to page 87.

    note: I am a GURU and never wrong

  8. IMHO this looked like a Slim Jim pattern or narrow-range, intraday consolidation pattern that forms at or near the high or low of the day. Generally, the longer and tighter the consolidation in prices, the more explosive the eventual breakout. This pattern was developed by Kevin Haggerty who ran Fidelity Capital Markets' Trading Desk for 7 years from 1990 to 1997 and is one of his favorites.
  9. aw? ^_^