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Lesson 101 - HOW to read a STOCK

Tony8898 · 12 · 3309

Tony8898

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on: Jan 10, 2013, 04:01 PM
This is lesson 101:  # 1: How to read Stock Movement
-------------------------------------------------------------------------
This is for newbies only. Lets take the case of MEG and LPZ. Both stocks
went down today, vs. yesterday ( and very strong past two days)- but I'm very happy! Why?

Because both stocks consolidated well. So far so good. Here is the rule of
thumb.

Price goes UP, and daily Volume also goes UP - very bullish, means new buyers   entering
Price goes up, but volume goes down                - oops Medyo bearish, means the  new buyers coming in are drying up.
Price goes DOWN, but daily volume also shrinks - Bullish, especially if volume is less than half!
Price goes Down, but daily volume also goes up - very Bearish! More sellers coming out!

Take MEG today, the daily volume shrank almost 50% vs. yesterday. It's bullish pattern. ..take LPZ, price went dip own a little, but volume also shrinks a lot! Very bullish Ito. For me, they both consolidating in a text bookish way nicely,

Lets see if bull run Friday tomorrow works. ., so correction today is the bwelo for tomorrow? What you thinks?


ferrariEverest

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Reply #1 on: Jan 10, 2013, 06:22 PM
Hello Tony,

a better rule of thumb sa pag analyze ng volume is read/analyze the candle/volume relationship base sa context ng surrounding bars/candles and not as a standalone.

"Price goes UP, and daily Volume also goes UP - very bullish, means new buyers   entering" --- not always the case
"Price goes Down, but daily volume also goes up - very Bearish! More sellers coming out!" --- not always the case. again, depende ito kung pano nagclose ang candle/bar


yung new traders na gusto gumamit volume, you should always analyze 4 factors
1. candle (ano itsura/size ng candle; kung pano nagclose yung bar/candle: kung bearish candle, how bearish?; kung bullish candle, how bullish was the close?)
2. price
3. volume
4. context. analyze lahat base sa context. ibig sabihin, icheck ang trend and previous price action (tanungin nyo sarili nyo, may consolidation ba before the current price?, may strong/weak na momentum ba bago yung current price?, etc.)

#4 is most important

natutunan ko yan mula sa retired and deceased traders
« Last Edit: Jan 10, 2013, 06:33 PM by ferrariEverest »


Senyor

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Reply #2 on: Jan 10, 2013, 08:17 PM
Tony and Everest:

Brilliant simple Rules to enter the market. Nice.

87 Dudes and counting  Read this Topic.
10 of which are Chief Traders


Am guessing your insight or rule of thumb shall be baked in tomorrows Candle Reading.

MEG am going in @ 2.95 end of month
LPZ am getting out @ 12.56

cheers PATRONES!

« Last Edit: Jan 10, 2013, 08:18 PM by Senyor »


yllor

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Reply #3 on: Jan 10, 2013, 10:51 PM
just a penny thought to new investor and beginner like me... as LESSON 101
take note of the price of stock if it is near top or near highest price for a year or month - DON'T BUY (unless you have other resources to check that this stock will continue to go up - hindi ka na baguhan nun.. :D ).. most of the time, high price stock fall or correct..
if the price is near bottom or from bottom price... mas malamang na pwedeng umangat presyo... (pwede pa rin naman bumaba pa presyo)...


Tony8898

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Reply #4 on: Jan 10, 2013, 11:14 PM
^ ferrariEverest
   Senyor

Thanks for the inputs guys. (Kayo talaga, for newbies lang nga itong thread, sinindak pa ninyo :) hehe

But seriously, at my age, I'm still amazed how much I can learn from everyone here at PMT..thanks for enriching this thread further for all to share.

Anyways newbies, I think FerrariEverest post is 'Stocks Investing 109',that course is available next semester to those who have made at least Php1 million profit. However, only females 19 - 27 are admitted in that course.

 Senyor's post is "Stock Investing for Phd's' ( ie, only for Billionaires Club members). Venue of that course is either in Genting Club or in Prive, the Fort.

----

In the end, many can make a killing in stocks in 2013.. But try buying a car in 2013, that process will kill you too! Whaaa, sobrang raming choices - Peugeot, T86, explorer, BRZ,,335i, escape, new civic, LS350, new Santa Fe, Sorento, mustang,new rav4,






-----




     



Imbestigador

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Reply #5 on: Jan 11, 2013, 12:32 AM
Sir Tony, forgive me for asking stupid questions below pero newbie lang po at gusto lang matuto  :)

Scenarios 1 and 4 are pretty easy to understand and straightforward.
Scenario 2 - Price up volume down is Bearish - This reads to me like it's not only the price of stock that determines whether the market is bullish or bearish.  Volume is one indicator as well.  Tama po ba understanding ko?
Scenario 3 where price and volume down - Bakit po bullish? What I understand is if the price goes up e bullish, bearish naman if the price goes down. 
« Last Edit: Jan 11, 2013, 12:34 AM by Imbestigador »


anidiottrader

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Reply #6 on: Jan 11, 2013, 03:38 AM
I think I'm good following tony's simple rules on price & volume...

Oooops! no raising of eyebrows please..  mainly because,

though I want to retire early, I don't want to die sooner.   :rofl:

sensya na.. flattery is the simplest form of my idiocy.

 :peace:


MrPopo

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Reply #7 on: Jun 21, 2013, 11:51 PM
I'm newbie here, thanks for the info. about price and volume relationship.

Nbasa ko kc, analysing price movement w/out volume is like riding a car w/out tyres. :)) and i guess its true.

« Last Edit: Jun 22, 2013, 08:18 PM by MrPopo »


kapitan88

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Reply #8 on: Jun 22, 2013, 08:55 AM
Wow. Lets keep this thread going.  Interested din.. Am staring at pse website for hours to try to undertand yung analogy ng price and daily volume. Konting advice pa po san dapat tumutok ng tingin. Parang rocket science kasi ito for a complete newb na super slow matuto- but very willing. :)  i'm just scared n bak aby the time i understand the basics, e too late na ko to enter ulit.  Like what happened last month, i so wanted to try uitf/mf, ayun sunog ako now. Laki na ng paper loss, but ayus lang long term naman yun.


kulatir

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Reply #9 on: Jan 01, 2014, 05:50 AM
up for this, sana dagdagan ng indicators.


grayback_01

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Reply #10 on: Oct 30, 2014, 06:05 PM
nice posts po mga sirs  :cool2:


wilch23

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Reply #11 on: Oct 31, 2014, 10:03 AM
This is lesson 101:  # 1: How to read Stock Movement
-------------------------------------------------------------------------
This is for newbies only. Lets take the case of MEG and LPZ. Both stocks
went down today, vs. yesterday ( and very strong past two days)- but I'm very happy! Why?

Because both stocks consolidated well. So far so good. Here is the rule of
thumb.

Price goes UP, and daily Volume also goes UP - very bullish, means new buyers   entering
Price goes up, but volume goes down                - oops Medyo bearish, means the  new buyers coming in are drying up.
Price goes DOWN, but daily volume also shrinks - Bullish, especially if volume is less than half!
Price goes Down, but daily volume also goes up - very Bearish! More sellers coming out!

Take MEG today, the daily volume shrank almost 50% vs. yesterday. It's bullish pattern. ..take LPZ, price went dip own a little, but volume also shrinks a lot! Very bullish Ito. For me, they both consolidating in a text bookish way nicely,

Lets see if bull run Friday tomorrow works. ., so correction today is the bwelo for tomorrow? What you thinks?

Why is it that for UP market, BUYERS are considered but on the DOWN market, SELLERS are the reason instead?
No buyer without seller and vice versa, right?
Shouldn't we be looking at the volume of buy and sell ORDERS instead?
Is this possible?


 


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