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Worden Discussion Forum » General Discussions » Stock and Market Talk » RISING PRICE AND A RED BAR

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67newt
Posted : Friday, February 26, 2010 6:00:38 PM
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Joined: 2/18/2005
Posts: 4
 TODAY 2/26/10 KMP WENT UP .55 CENTS , THE PRICE BAR WAS RED AND THE CORRESPONDING BOP BAR WAS ALSO RED AND WAS BELOW THE LINE.  HOW WOULD I INTERPRET THAT?  I WOULD THINK THAT IT SHOULD BE GREEN OR YELLOW?  PLEASE NOTE THE OTHER RED PRICE AND BOP BARS IN FEB.  THANK YOU FOR YOUR HELP
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bustermu
Posted : Saturday, February 27, 2010 6:27:49 AM
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Joined: 1/1/2005
Posts: 2,645

QUOTE (67newt)
TODAY 2/26/10 KMP WENT UP .55 CENTS , THE PRICE BAR WAS RED AND THE CORRESPONDING BOP BAR WAS ALSO RED AND WAS BELOW THE LINE.  HOW WOULD I INTERPRET THAT?  I WOULD THINK THAT IT SHOULD BE GREEN OR YELLOW?  PLEASE NOTE THE OTHER RED PRICE AND BOP BARS IN FEB.


67newt,

BOP behaves very much like a period 16 oscillator form of OBV.  For an explanation, please see:

http://forums.worden.com/Default.aspx?g=posts&t=45246

First, what is important about price change as far as BOP (and OBV) is concerned is whether it is up or down, not its magnitude.  The magnitude of volume is important.

For KMP, notice the high red volume bar on 1/29.  Its strong effect on BOP ceased (after 16 market days) on 2/23 causing BOP to change from red to yellow.  If the two relative high red volume bars on 2/4 and 2/5 had been small, the change in BOP on 2/23 would have been from red to green and the last four BOP bars would be green.

We now see that your question on how to interpret your observations of BOP becomes how to interpret the presence of the two relatively high red volume bars on 2/4 and 2/5.  I will not respond to either, but their interpretation must be the same for consistency.

Thanks,
Jim Murphy
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bustermu
Posted : Saturday, February 27, 2010 7:29:33 AM
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Joined: 1/1/2005
Posts: 2,645
 Addendum:

QUOTE (bustermu)
If the two relative high red volume bars on 2/4 and 2/5 had been small, the change in BOP on 2/23 would have been from red to green and the last four BOP bars would be green.


The above statement is a little too enthusiastic.  Please change it to:

If the two relatively high red volume bars on 2/4 and 2/5 had been small, the change in BOP on 2/23 would have been up considerably to green and the last four BOP bars would be green.

Sorry,
Jim Murphy
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johnlc
Posted : Saturday, February 27, 2010 11:14:27 PM
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Joined: 2/21/2007
Posts: 797
 KMP     oil and gas pipelines sector    

Price % change friday  # 12  of  32     

 a good day for the entire sector. 
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