Questions for the Doc!

[RRMan03]

Thank you Doc. Roag you are exactly correct. I also wish I was great with TA but I just do not have the time to become good so I come here. It is always an advantage to know what kind of game you are getting into. I am always looking for .5 points. Here as there you know the game is fixed so you have to go in knowing that and use it to your advantage.And Doc does it very well.

[Dasein]

This thread is a perfect example of why this is the best stock site on the internet.  Great job guys, I wish I could do TA like this but I'm very thankful for Doc and everyone here who can.

Agreed. I am new to trading and trying to learn as much as possible in a short amount of time. This thread quite possibly is the best introduction to TA that I have seen in my hours of reading books and different websites. I particularly appreciate that the doctor keeps it simple.

Hopefully, the this doctors clinic (and our accounts) will grow astronomically.

Keep at it Doc. We appreciate it.

Between this and the gloss of terms I am starting to get the hang of reading volume and ADX. What would be the "next" step? MACD?

I have a decent handle on candlesticks, but need to memorize formations and what they generally mean to be able to just read them more naturally.

[Dr PennyStock]

This thread is a perfect example of why this is the best stock site on the internet.  Great job guys, I wish I could do TA like this but I'm very thankful for Doc and everyone here who can.

Agreed. I am new to trading and trying to learn as much as possible in a short amount of time. This thread quite possibly is the best introduction to TA that I have seen in my hours of reading books and different websites. I particularly appreciate that the doctor keeps it simple.

Hopefully, the this doctors clinic (and our accounts) will grow astronomically.

Keep at it Doc. We appreciate it.

Between this and the gloss of terms I am starting to get the hang of reading volume and ADX. What would be the "next" step? MACD?

I have a decent handle on candlesticks, but need to memorize formations and what they generally mean to be able to just read them more naturally.

It's the KISS rule, Keep It Stupid Simple

Stick with this template: http://stockcharts.com/h-sc/ui?s=SAPX&p=D&b=5&g=0&id=p28575963931

Take attention to the candles themselves, and, correlate them with the volume, forget formations, that is trash.

Study only the indicators and overlays you see on my template, do not worry with the rest.

[RoagTrader]

Doc, in the absence of news or any other extraneous factor that might cause a stock to keep rising or falling, how common is it for a stock to "fill a gap"?  And why does a gap have to be filled in the first place, what makes it a gap and why so important?  Thanks.

[Dr PennyStock]

Doc, in the absence of news or any other extraneous factor that might cause a stock to keep rising or falling, how common is it for a stock to "fill a gap"?  And why does a gap have to be filled in the first place, what makes it a gap and why so important?  Thanks.

Well, the first question is difficult, because some gaps will never be filled, others will take months, others years, etc, etc. The gap's theory says that about 90% - 95% of the gaps are filled, but, depends of the gaps, for example this gap http://stockcharts.com/h-sc/ui?s=BPAX&p=D&b=5&g=0&id=p79657395053 may take months to be filled, maybe years, because the distance is too big, but, for example, this gap took almost five moths to be filled http://stockcharts.com/h-sc/ui?s=BPAX&p=D&b=5&g=0&id=p79657395053 , curiously with another gap, bigger than the previous one , but, this one http://stockcharts.com/h-sc/ui?s=CRYP&p=D&b=5&g=0&id=p30255388249 , may take only a few days, because the distance is small, from 2.05 to 1.75 is about a 10% move to the down side, so this stock may go higher, but, first it will fill the gap, almost sure.

What makes a gap is in 99% of the cases, extremely buy or sell pressure caused by news, very good or very bad, so the pressure is so high that causes a panic buy or sell before the market open, and, when it opens, causes a gap in the charts, the BPAX example, it was bad news, the pharma companies are the ones with more gaps, due to approval or disapproval of new drugs and medications by the FDA.

A gap is very important, because the market follows the theory of the gaps, that they will or need to filled, sooner or later, so the gap acts like a magnet, something that attracts the price of the stock to that level.

Hope I was clear enough, if not, just let me know. 

[10yearplan]

Question about Dilution
After watching a few videos and reading some it seems Volume spikes and price action are the main visible indicators followed at some distance by Accumulation. Convertibles, PPs, the co. adding to O/S, etc, ... some of the sources.
Would it be possible after some accounting (for example convertibles schedules) to annotate a chart illustrating the movement of Dilution?. Some cos. update their SS weekly and most at the Q - do you think this progression could be plotted or to inaccurate to be worthwhile?.
Thanks, 10yr

[Dr PennyStock]

Question about Dilution
After watching a few videos and reading some it seems Volume spikes and price action are the main visible indicators followed at some distance by Accumulation. Convertibles, PPs, the co. adding to O/S, etc, ... some of the sources.
Would it be possible after some accounting (for example convertibles schedules) to annotate a chart illustrating the movement of Dilution?. Some cos. update their SS weekly and most at the Q - do you think this progression could be plotted or to inaccurate to be worthwhile?.
Thanks, 10yr

Not inaccurate, but, I think that what is important is the price variations, so this will be only important to understand the effects of the dilution in the chart, will not help you to predict the future of the stock. As a matter of study is ok, not useful, IMHO.