FAQs Frequently Asked Questions

Q: A pocket pivot occurred for VICR which was stopped out a day later from a one-day market down day. As you share that is important to consider the context of the market, this stock's volume, despite being high on a 'down' day showed supportive action as it rallied back up with a decent downside capture ratio, meaning it fell less than the broader market. One could argue that this is potentially a good sign than a bad one.

Assuming we wait until the next pocket pivot volume signature, would you disregard this particular day as one of the countback red volume days for the rules required for a pocket pivot as it may have been seen as accumulation rather than distribution?

A: Context is important so in some cases such as this one, you could disregard this as a red volume day.