Registered User
Joined: 1/21/2005
Posts: 22
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I just found this stock ENZN, which has been in a huge downtrend since November 2004. Since mid June it has been consolidating and price is currently just below its 40 day moving average. The TSV has been divergent since May and for the first time since the downtrend began, it has crossed above the zero line. It looks very interesting especially if we see a breakout above the moving average.
Tell me what you think
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Registered User
Joined: 1/1/2005
Posts: 2,645
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rahil,
The apparent bullish action of TSV you are observing is caused not so much by the recent action of TSV but by the moving average you have placed on TSV. In order to see this, please set up Cumulative TSV as follows:
Top Window
Custom Cumulative Indicator
Up Condition
ABS(V)>=0.0
Down Condition
ABS(V)<0.0
Value To Add/Subtract
TSV1
Now you can see that there is nothing particularly positive about TSV. Price has risen to its mid-May levels, but Cumulative TSV is still well below its mid-May levels. If you observe MS, you will see that it is stronger than Cumulative TSV.
TSV is not the cause of the deception, the moving average placed on it is.
Thanks,
Jim Murphy
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Registered User
Joined: 1/21/2005
Posts: 22
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I really don't understand. Why can't I just use the TSV from the list of indicators provided?
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Registered User
Joined: 1/1/2005
Posts: 2,645
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QUOTE (rahil) I really don't understand. Why can't I just use the TSV from the list of indicators provided?
TC2005 provides a built-in Cumulative Indicator for MS but not for TSV. You have to construct Cumulative TSV. Cumulative TSV showes you what TSV is currently doing not intermingled with the distant past. It is impossible to tell what TSV is currently doing by observing TSV20 Simple alone. It is possible to determine exactly what TSV is currently doing by observing TSV20 Exponential alone but no human can do it consistently without extensive calculation. The interpretation of Cumulative TSV is exactly like the interpretation of MS.
If you would like to see what intermingling a different past with the present will do, put TSV67 Simple on your chart and compare to TSV20 Simple.
Again, TSV is not the cause of the deception, the moving average placed on it is.
Thanks,
Jim Murphy
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Registered User
Joined: 1/21/2005
Posts: 22
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Thanks for your help Jim.
But I still have one question. Why do the Wordens use the simple TSV on all of their charts? Frankly, being new to Telechart and the TSV, I am basically follwing what they do in their own charts.
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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Bustermu uses TSV differently, setting it up as cumulative TSV using the custom cumulative indicator tool. However, TSV can be quite effective when plotted just as you have it on your chart. I recognize the divergence you mentioned, and yet I also see that TSV has been somewhat divergent for a much longer period. Overall, from December through April, while price was in a steady decline, TSV actually held up. It didn't go up, but it really didn't slide like price did, other than the normal fluctuations one often sees. TSV did fall apart in April, but then as you've noted, it has been quite divergent since mid-May.
You may benefit from Peter Worden's TSV video, which can be purchased with a one year money back guarantee by clicking the Books and Videos link at the top of this page.
- Doug
Teaching Online!
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Registered User
Joined: 1/21/2005
Posts: 22
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ENZN up 6% today!
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Registered User
Joined: 3/19/2005
Posts: 5
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rahil
nice call on ENZN .... I guess your use of TSV was just fine. WTG
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Registered User
Joined: 3/19/2005
Posts: 5
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rahil
It showed up on my higher than normal volume scan of low priced issues and I have a buy stop @ 7.68 with a stop of 6.60. I hope you traded it with that nice move the other day! Let's see what happens.
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Registered User
Joined: 5/17/2005
Posts: 221
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Here are my thoughts on this chart ....Nice set up for a swing trade on July 5th , 14% one day ! Looks like it is a slight pull back over the last two days. This seems to be divergent to the sub industry plot , that seems to be trending up slightly while ENZN crashed and burned in the first half of the year. I like the look of the cup and handle formation at the bottom. I plot TSV 18 on my charts , that seems to work for me, and it is divergent to the price since May as you indicate RAHL. I have placed an alert at the gap down price of 8.35 (May 21st). If it breaks through this resitance line then I may enter long with a tight stop as the 50 day MA is way below the 200 day MA , not one of my favourtie things. I like stocks that 50 day MA above 200 day MA. Short term I am looking to the one hour chart for a breakthrough of July 5th high , --which happens to be around the buy stop that aditomma has right now...indicating that the last two days have been a pull back from the 14% day ...... Thanks for the chart 
Malcolm
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Registered User
Joined: 5/17/2005
Posts: 221
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well today my buy entry was triggered and I was in .....hang on tight ....
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Registered User
Joined: 1/21/2005
Posts: 22
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are u in for real? or is this a hypothetical entry?
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Registered User
Joined: 5/17/2005
Posts: 221
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Rahil .. in for real.....so keeping my eyes on this one. i have a tight stop . TSV 28 , MS and price are all in agreement on the uptrend over the last month , formed cup and handle at the bottom and the stock traded thru the handle , good buy entry. I like the four day pattern , an explosive day on good volume four days ago , two pull back days on lower volume each day , and then an up today on Friday on heavy volume. My target is 8.4 ( gap down price mid april). If it passes through this resistance line then i will raise my target. Although cup and handle patterns , resistance and support lines are really open to each individuals investor trading style I like to trade this style on swing trades , both long and short. I like to use TSV , MS and BOP. Volume is always a good indicator as well.
Rahil I also use TSV 18 and price divergance scan , as you did to find this stock .
Once again thanks for the chart ...I will keep you all posted as to how things go
Malcolm
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Registered User
Joined: 3/19/2005
Posts: 5
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malcolmb14 & rahil,
I also am in this trade. malcolmb, I am in agreement with your analysis of the price movement. I think it is ready to explode again today(Monday July 11). I have my exit order set @ 8.03 which is 25% higher than my entry. I also will keep 100 shares for longer term portfolio with a stop of 6.60 GTC. 6 of my last 14 plays have gained 25%+ with these type of plays. Let's make it 7 ENZN!!!!!!!!!!!
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Registered User
Joined: 3/19/2005
Posts: 5
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BTW,
The 6 - 25% + winners were FUEL,GEOI,MOS,ALKS,BDCO,MPET. The other play that I entered on Thursday was VPHM @ 8.22 and is on it's way to my 25 % target of 10.28 Take a look at the charts to see what these all had in common, most of all the winners hit their target 25 % within days of entry.
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Registered User
Joined: 1/21/2005
Posts: 22
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I wish I could join you guys long on this one. Unfortunately my money is tied up. Anyways, if I find something else exciting I'll post it...till then enjoy the ride!
Rahil
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Registered User
Joined: 1/4/2005
Posts: 4
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out of this the am at 7.47-I think it's good between 6.50 and 7
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Registered User
Joined: 12/2/2004
Posts: 1,775
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I got stopped out of 1/2 my postion at 7.43. Unless it finishes decently with stronger volume near close, I may dump all. good luck.
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Registered User
Joined: 3/21/2005
Posts: 1
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I don't see the volume support for it to go much higher - there hasn't been any significant increase in volume at all. I would take profit on this.
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Registered User
Joined: 5/17/2005
Posts: 221
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aditomma ...VPHM ..mmmm I like that one made some money in that last week ...hit target .... looking to get back into it soon but I have a custom CCI (leading indicator) and stochastics indicate that it is in overbought condition right now. Did you look back as far as 2002 ...there was a huge gap down back then and now this stock is trading above the gap value. A strong stock ....
EZCN ... formed a dark cloud candle yesterday. Today there wasn o follow through on this bearish candle pattern ....Kevin I agree with you on the volume ....but TSV18 , my CCI 14 period indicator and money stream all looking ok ...I am in holding pattern on this one right now ... down 1.88 % ... but have a tight stop ....I still think there is some upside to this stock target 8.5 ....
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Registered User
Joined: 1/21/2005
Posts: 22
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ENZN up over 9% yesterday....there is still gas in this one!
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