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Friday, June 3, 2011

accumulation-distribution indicators

Condition Tom and similar accumulation-distribution indicators are essential tools to evaluate a new high strength breakouts. Expect an immediate upward thrust when OBV draws a pattern more bullish than the price chart. Alternatively, when more ACC-DIS readings show ownership limping behind price, to prepare for an extended basing period. And always wary of LSE shares. Their odd transaction reporting can lead to false OBV readings.

Final phases of congestion often print sharp initiation points for breakout momentum. Locate this hidden root structure in double bottom lows embedded within the congestion on the eve of the trend is moving. The distance between these lows and the first resistance boundary will yield price targets for the next gathering. The ban on larger forces, this new high breakout should extend no more than 1.38 times the distance between the low and the resistance before creating a new top range.

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