SPOTTING ACCUMULATION
"To spot professional accumulation, all we need to do is find an example of steady and determined buying in the face of a weak stock market. When this happens we have a good idea that professional buying is taking place." (The Secret of Selecting Stocks for Immediate and Substantial Gains", by Larry Williams, p. 14)SPOTTING DISTRIBUTION
"Professional Selling will show up when we see consistent and determined selling in the face of a strong market. When the Market is surging, but selling pressures enter a particular stock, we can bet that we have a stock undergoing professional, informed selling." (The Secret of Selecting Stocks for Immediate and Substantial Gains", by Larry Williams, p. 14)
COMBINING IT WITH STOCK CHART
ACCUMULATION DETECTION
Look for Bullish Divergence. When a stock fails to be severely affected by the selling pressure of the overall market, then there is Bullish Divergence. The bullish divergence of the stock is when it goes against the overall selling market direction and rally heavily upward when the overall market is trending higher.
BELOW IS A COMPARISON OF LIFE AND NASDAQ
NASDAQ INDEX - 2020/07/20
FUV - 2020/07/20
LIFE VS NASDAQ
There is a small activity going on with LIFE but the volume seemed not to be supporting it. Maybe this is the beginning or is waiting for another pull-back before Volume comes in.
SVM VS NASDAQ
SVM is rallying strongly higher than NASDAQ
SVM vs DOW
SVM is showing strong divergence upward against falling DOW Jones
SVM by itself
SNAP VS NASDAQ AND DOW JONES
SNAP VS NASDAQ AND DOW JONES
SNAP 2020/07/20
If you see the chart carefully, SNAP is outpacing the upward strength of NASDAQ in orange line and diverging upward against the downward strength of DOW Jones in purple line. By Larry William's theory, this stock is under accumulation.
Based on Volume and Price Action Analysis, there are 2 huge red days but very small volume noticeable with SNAP. These were June 26, 2020 and Jul 16, 2020. SNAP had actually just broken out its previous high of $24.00 from its Debut day. It had now broken $25.00. If it holds on $25.00 or at least hold on its $24.00 support then this stock will continue to rise.
RADA VS NASDAQ AND DOW Jones
RADA 2020/07/20 VS DOW & NASDAQ
RADA 2020/07/20 Volume-Price-Action
RADA against DOW is clearly exhibiting strong divergence upward against DOW's (in purple) direction. And comparing it with NASDAQ, it had shown aggressive upward move with much volatility against NASDAQ's rising price action.
Looking at the Volume Price Action Chart of RADA, it had experienced double top around $6.50 that is why it could not hold the price there and it had to come falling down. There are however 2 huge volume support which come from Sep 16, 2019 and Jan 06, 2020 which are waiting to hold the price at around $5.83. If the price does not break down $5.50 then we will have a potential for continuation of its move upward.
BLFS VS NASDAQ and DOW JONES
BLFS 2020/07/20 VS DOW JONES
BLFS 2020/07/20 VS NASDAQ
BLFS 2020/07/20 Breakout on Previous High
Against Dow Jones, it is clearly seen that BLFS is showing strong divergence going upward while DOW Jones was merely trading on range. If we check how it fared against NASDAQ, it basically showed a strong upward move that is a lot stronger than NASDAQ's rise. And what is so noticeable is that the strong move upward is supported with huge volume as well. This is really accumulation.
This is the calculation we had with the kids when we reviewed BLFS last 2020/07/02
TP = Target Price
PH = Previous High
VL = Volatility Low
TP = ((PH-VL)*3)+BC)
TP = ((17.29 - 11) * 3) + 18.96
TP = 37.83
1ST PULL @ 20
2nd PULL @ 27
3RD PULL @ 37.83
ENTRY RANGE: 15.30 to 17.30
At the current move this entry has not been materialized. We should have moved the entry closer to the close of 17.98 when it had the huge candle on July 2, 2020 backed with heavy volume of 3.7M compared to the normal volume of between 100-400M shares.
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