Initiative/Responsive

         Use the initiative /responsive question to identify strong buying or selling days. Use it to examine market behavior on days preceding and/or following these days.

Profile Analyzer Hint: Use the power of The Profile Analyzer for inductive analysis as well as deductive analysis. Deductively, you can search for what happens on days following a significant trading day. Inductively, once a significant trading day is identified, you can examine market behavior for patterns that occur leading up to that type of day.

Example:

         A 3-I selling day. (All three types of TPO activity demonstrate selling behavior. There is selling at the extremes, a selling TPO count and selling range extensions.)

Questions from Traders:

         How often do 3-I selling days occur? Does selling carry over to the next day?

Setting Up the Search:

Click on the parts of the box below where appears for explanations of features.

Answers:

         Our search for 3-I days yielded 21 days which fit the criteria of having selling in all three areas of TPO activity. On searching simultaneously in the Analysis window for 3-I days and a lower close the following day, we find that only 7 days fit this criterion. Thus, it would seem that over two thirds of the time, a 3-I selling day represents at least a short term selling climax in the market...a good day to take profits on short sales!