those high and low prices each day and connects them from one day to the next so they form continuous lines. This indicator simply plots form the continuum channel lines. These points nel indicator is created, remember that every day that the float is calcu- are calculated on a lated there are two price levels corre- bar-to-bar basis, which sponding to the highest and lowest when connected together prices in the float turnover price range. and one point at the To better understand how this chan- lowest price. These three dates The channel indicator (October 13, 1995, November 22, simply plots one point 1996, and October 24, 1997) are the points on this chart where the price at the present float breaks above and below the float turnover’s highest price turnover. When the top for- mation is complete, the price breaks through the bottom channel line on October 24, 1997. The price continues to rise, topping in late August 1997. C = Price breaks below turnover of the float on 10/24/97. 45 B = Price breaks above turnover of the float on 11/22/96. ![]() 80 Float Analysis Figure 3-6 Original Float Indicator and Channel Indicator Combined 55 A = Price breaks below turnover of the float on 10/13/95.
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