I spent 4 hours, alone, in a car driving to & from a jobsite today. I used this time (and the voice memo function on my ipod) to explore my thoughts about what, exactly, I’m trying to identify with my watchlist.
Price by Volume plays a significant role in my analysis, and I started to think about the significance of these “volume voids” that I’m searching for.
I have yet to listen to what I was saying, but the basic premise is that I came to the conclusion that there are two circumstances under which a void in volume will exist.
- one in which price has previously traded
- one in which a stock is breaking out to new all-time highs.
What I need to do is separate out stocks that fit criteria “A” and criteria “B”…as my expectations cannot be the same for both conditions. One is bounded, the other is an open-ended function.
More on this tomorrow as I will have my thoughts more organized.
Until then, my best to you all.