The markets are weakening into the bell and could get weaker, but we are still in balance. A test lower to gauge buyers’ appetite would not surprise me and may be effective in shoring up the 09/11 gap a bit better. Look at the volume profile below, we have an upper tail, but no lower tail, you dig?
Be patient:
’round here they call the upper part a wick and the part at the bottom a tail (makes sense), but what the hell do I know? I’m just a cat trying to manage tail-risk.
Going forward upper tails will be called wicks per nomenclature clarifications from the highly regarded StockCats
haha, well I’m used to talking about candles on stocks and tails poke out from the bottom, wicks poke out the top (makes sense).
Makes it easy for me to say something like “do you see the tail on that candle?” and the direction of the “poke” is understood.
Not sure if this is proper nomenclature with volume profile charts but I appreciate the acknowledgement. And we all certainly appreciate these blog posts kind sir.
Totally makes sense. Most people seem to either not know I use the wrong verbiage or do not care to correct me. I’m glad you take the time to educate. Now we can talk faster and it opened my eyes to the idea of relating a long thin profile tail with candle theory.