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Figure 21-1
WTTieBar.GIF. |
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whatever reason, I should have had more confidence based on this failure of the squats and perhaps put on a larger position than normal. The swing trader would also have found the price levels where the big guys play and might well have considered stops based on this activity rather than a money stop. |
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Neal: The terms you use, like squat, would you be kind enough to explain them? |
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Larry: A squat (shown as a double exclamation point) is an increase in volume and a decrease in the MFI from one bar to the next. The MFI is the range of a bar divided by its volume. If the volume increases more than the range, then the MFI goes down, suggesting resistance (or support). There is more activity, but the market is moving less proportionately. If the volume increases significantly and is high in and of itself for that commodity, it suggests the big players are now involved. That tug-of- |
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