Re: Tree Shaking! They Want In!!!
in response to
by
posted on
Mar 22, 2017 11:43AM
When you look at that article on the Wyckoff Method it talks about a stock trading in a range.....with a floor and a ceiling. It says the "smart money players" (my words) will alternate between buying and selling (shorting) in order to accumulate.
It uses the example of stock climbing to $60......but let's put it in RVX's area code in terms of dollar value.
The method could have we'll say $2.40 as the ceiling and we'll put the floor at $2.20......So at $2.40 we'll say 10,000 shares are sold short, moving the price down.....when it hits $2.20 or therabouts those 10,000 shares are bought back (covered off) and we'll say another 5,000 shares as well are bought as the price climbs back to $2.40.....When it hits $2.40 again a new short position is opened up, shorting 10,000 shares again which drives the price down to that $2.20 area where the shorted shares are covered...and then on the way back to $2.40 another 5,000 shares are added to the long position which now sits at 10,000.....
Rinse and repeat, rinse and repeat, rinse and repeat.....
I don't see enough history to suggest this is happening with RVX....maybe its started, but we'll have to wait and see if a trading range comes into play.