G. Roet wrote:
Quote:
There are NO profitable 'speculative' shares under ~2.84.
PS. Do not forget, there are NO profitable spec. shares under ~2.75. So, to dive lower some parties must take losses.
Ja en? Verlies wordt er dus wel degelijk genomen = dagelijkse praktijk(!) tegenover allerlei geweldige verklaringen achteraf!
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Response to G. Roet:
Not at all, G. Roet. It gives you estimation of the prob for future trending change ...
It's simple, if there are NO profitable spec shares under the certain level, the prob to dive lower decreases essentially, increasing the upwards pressure and increasing the chance to move up in 'near future'...
Of course, there could always be a party that just 'must' take losses using, for instance, 'stops', or other rm-constraints. But there are NO 'spec longs' which could profit by closing. Also 'shorters' think well at 'such levels'. So far, it has sense indeed 'to think well' (about your stops, and most likely future dynamics) when prices are approaching 'profitable levels', avoiding 'stops hunting', decreasing your 'real loses' and increasing the prob for stocks to rise. Again, it's also one of (basic) mechanisms of (different) 'supports' formation, though it's much more complex, as dynamics must be accounted for.
There are some other important stuff related to such levels, and their changes. For instance, the 'negative balance' dynamics --> i.e. change (decrease) in cumulative & partial volumes, which were sold out under the each new, if any, 'profitable level' (that is just related to volume of 'taken losses', taking into account 'short selling' as well).
So, G. Roet, good luck with analysis (and understanding)