A live example of market stages using VONE

gann · 1 A live example of market stages using VONE Thu Jul 21, 2011 9:11 pm

gann

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VONE 60 minute chart
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Before you enter a trade you need to know which stage the stock is. You should look to buy only at the end of an accumulation phase. the lower limit will be tested couple of times with higher lows if the stock is ready to break out.

In the distribution phase the high is tested couple of times. if it makes lower highs you can bet your pants, the stock is ready for run down phase. Smile

Last edited by gann on Thu Jul 21, 2011 9:35 pm; edited 3 times in total

Rajaraam · 2 Re: A live example of market stages using VONE Thu Jul 21, 2011 9:15 pm

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Could you please deliberate further for us to understand clearly.

gann · 3 Re: A live example of market stages using VONE Thu Jul 21, 2011 9:16 pm

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vone may go down and enter a re accumulation phase
or
run up after the present accumulation phase.

we need to observe if it breaks out or breaks down.

gann · 4 Re: A live example of market stages using VONE Thu Jul 21, 2011 9:17 pm

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Rajaraam wrote:Could you please deliberate further for us to understand clearly.

All speculative markets have the following basic movements:
1. Accumulation (congestion) – the bottom of the market
2. Run up
3. Distribution (congestion)
4. Run down

Before you enter a trade you need to know which stage the stock is. You should look to buy only at the end of an accumulation phase. the lower limit will be tested couple of times with higher lows if the stock is ready to break out.

Last edited by gann on Thu Jul 21, 2011 9:30 pm; edited 3 times in total

mark · 5 Re: A live example of market stages using VONE Thu Jul 21, 2011 10:16 pm

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excellent example guru Very Happy

3 reps from me Very Happy

,its hard to find such a good clear examples for us,only experts can figure it out,thank very much Very Happy

gann · 6 Re: A live example of market stages using VONE Thu Jul 21, 2011 10:21 pm

gann

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@mark,
I am no guru.

can you spot the three tops in the distribution phase with the 3rd one being lower. clearly shows the stock is being tested for highs. failing in the 3rd attempt bulls give up.

Rajaraam · 7 Re: A live example of market stages using VONE Thu Jul 21, 2011 10:50 pm

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gann wrote:

Rajaraam wrote:Could you please deliberate further for us to understand clearly.

All speculative markets have the following basic movements:
1. Accumulation (congestion) – the bottom of the market
2. Run up
3. Distribution (congestion)
4. Run down

Before you enter a trade you need to know which stage the stock is. You should look to buy only at the end of an accumulation phase. the lower limit will be tested couple of times with higher lows if the stock is ready to break out.

Thank u gann. But only problem is how do you know the end of the accumulation phase.

Academic · 8 Re: A live example of market stages using VONE Thu Jul 21, 2011 10:57 pm

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Rajaraam wrote:

gann wrote:

Rajaraam wrote:Could you please deliberate further for us to understand clearly.

All speculative markets have the following basic movements:
1. Accumulation (congestion) – the bottom of the market
2. Run up
3. Distribution (congestion)
4. Run down

Before you enter a trade you need to know which stage the stock is. You should look to buy only at the end of an accumulation phase. the lower limit will be tested couple of times with higher lows if the stock is ready to break out.

Thank u gann. But only problem is how do you know the end of the accumulation phase.

As I stated in http://forum.srilankaequity.com/t7043-sales-by-nimal-perera .

NP has sold 204000 of his original stake bought at 25. May be he knows at which stage VONE is.

gann · 9 Re: A live example of market stages using VONE Thu Jul 21, 2011 11:00 pm

gann

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Rajaraam wrote:
Thank u gann. But only problem is how do you know the end of the accumulation phase.

i will cover that part in a later post. I encourage you to study past charts of liquid stocks. I hope you will be able to share some of your findings here.

gann · 10 Re: A live example of market stages using VONE Thu Jul 21, 2011 11:03 pm

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@Academic
what Nimal or bimal does is their business. We have to use our knowledge and tools to read the supply and demand, keeping in mind the fundamental value of the stock.

stumpy · 11 Re: A live example of market stages using VONE Thu Jul 21, 2011 11:13 pm

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gann wrote:@Academic
what Nimal or bimal does is their business. We have to use our knowledge and tools to read the supply and demand, keeping in mind the fundamental value of the stock.

+ Rep brother!

Keep up the good work!
U told about UBC, I suggest you to have a look at EXPO too!

gann · 12 Re: A live example of market stages using VONE Thu Jul 21, 2011 11:22 pm

gann

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stumpy wrote:
U told about UBC, I suggest you to have a look at EXPO too!

Expo is another good example to study what i have covered here. use the 60 min chart. so wait for transition from run down to accumulation.

stumpy · 13 Re: A live example of market stages using VONE Thu Jul 21, 2011 11:33 pm

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I'm watching OGL these days!

Nice trendline in the daily chart. I feel it just formed a double top which you may see in 60 min chart!
If not it can be an another attempt to break 35.8 barrier.
This can be the distribution stage Wink

It'll be good after closing at or above 36/=.

JennyFunny · 14 Re: A live example of market stages using VONE Fri Jul 22, 2011 8:50 am

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@ Gann great info..this was actual first explained by Dow Jones it is know as Dow Theory..i am sure you already know that..this is for the other readers..

Lets hope for a green day today.
Happy Trading