The
first graphic to the left will teach you the
basic
premise of Float Analysis.
For
a better view of the graphic,
Click on the image
to the left
To check out some
recent Stock Picks that went out in
our Newsletter and to understand the principles
of
Float Analysis with real examples. (click here)
The
second graphic to the left will help to
explain
Support and Resistance (Buy and
Sell) Points
in Float Analysis.
For
a better view of the graphic,
Click on the image
to the left
Below is an actual
example.
The
company is Onyx Pharmaceutical (ONXX)
It is an excellent example of a
Float Turnover at a Bottom and a
Top.
The total cumulative volume traded
in each of the shaded rectangles
equals the
number of shares (24.4 million shares) available for trading by the public
(i.e. the float).
The idea here is that a change of
ownership occurs right at the top
and right at the bottom.
The
'Smart Money' accumulates at the
bottom
and sells at the top. The
'Dumb Money' sells at the bottom
and
buys at the top.
