Contracting Price Range
Note: The historical stock examples given below are for EDUCATIONAL USE ONLY. They ARE NOT to be used to make buy/sell decisions in today's market. For more information, please read the HSR Terms of Use.
Description
Price declines, but its range contracts on an increase in volume.
Behavior Note: Price usually closes lower for the week, but the close may be at the midpoint (or higher) of the week's range.
What you need to know
After a decline, Contracting Price Range on an increase in volume is a sign of accumulation.
This supportive price action suggests that institutional investors are aggressively absorbing any supply (selling) that's coming into the market because price can't move much lower despite the heavy volume.
Historical Stock Chart Examples 1A & 1B: Energizer Holdings (ENR) 2006-2007
|
Click to enlarge 1A
|
Click to enlarge 1B
|
Please >>CLICK HERE<< to go to the next price behavior within Base Behaviors.
| 
