Thrusting Out of the Zone
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
After retracing to a Prior Demand Week (PDW) and/or showing signs of accumulation/bottoming price behaviors, price aggressively thrusts out of a low on wide range AND extremely heavy volume.
Behavior Notes:
- "The Zone" refers to a past (PDW) or current accumulation zone.
- The price thrust should be very convincing and leave little doubt that higher prices may be on the horizon.
- Thrusting Out of the Zone may be identified the earliest on a daily chart.
What you need to know
Like other thrusting behaviors, Thrusting Out of the Zone indicates that competition for a stock is increasing among institutional investors.
Thrusting Out of the Zone may be a catalyst that helps form the right-hand side of a stock's base.
Historical Stock Chart Examples 1A-1C: Garmin (GRMN) 2002
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Click to enlarge 1A
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Click to enlarge 1B
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Click to enlarge 1C
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Please >>CLICK HERE<< to go to the next price behavior within Base Behaviors.
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