Herding, from Jim Sogi
The recent order flow and price action seems so lopsided from day to day with up volume or down volume totally dominating on one side or the other recently.
This is an example of herding. Today NYSE up volume is 121m and down vol is 76k. Look at the stem chart of the closes and notice how they bunch at the hi/lo of the day. Chair and Larry studied this before. This is additional evidence of the trending hypothesis mentioned before. This seems to be related in some unknown and as yet unstudied way to predict the big gaps.
The decimal point is 1 digit(s) to the left of the |
Random action would create more equal boxes.