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Worden Discussion Forum
Sir Bollinger band width
Heavy buying for CIMT coming in. Started about an hour ago.
Price is moving up a bit.
It will be interesting to see what happens over the next 2.5 hours plus leading into the close. Check out the TSV at about 3:30 PM EDT and see if it tells you anything
Earnings tomorrow before the bell.
As best as I can figure BOP is calculafed over a relaively shot period of time and updated by dropping an old day and adding the current day's data..
It appears to me to be calculated using trade sizes and trade direction, possibly the bid and ask.
Bottom line on BOP is that it it appears to be an attempt to capture accumulation and distribution days.
Since the BOP is a what I consider a short term indicator taking into account less than a months worth of activity, one day of 3X or more than average volume can significantly move the BOP. .
Since low float stocks tend to have more extreme volume days relative to their average daily volume BOP is lot more volatile on low float stocks where sometimes one extreme volume day can be as much as the total volume for a 2 or 3 weeks. This is a lot less lightly to happen where the float and daily volume of a stock are high like with say stocks like MSFT, ORCL, etc.
I have seen stocks go up for long periods of time while their BOP is red and down for extended periods of time when their BOP is green.
I haven't looked into MS that much except it seems to me that from my experience you are more likely to see TSV as a positive or negative divergence than MS.