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Treaty Energy Corporation TECO
Posted On: 08/03/2014 10:14:31 PM
Post# of 39368
Posted By: peanuts
If you look at TECO chart and superimpose the accumulation/distribution line on the stock price line, you will see evidence of accumulation for the last year and a half. I can't seem to be able to capture the image and include it but it looks very divergent which would predict a price increase upward:

Bullish and Bearish Signals
The A/D line creates both bullish and bearish signals. These signals rely on divergence and confirmation.

Bullish Signals
Bullish signals occur when the price of a security is moving down or is in a downtrend, but A/D line is trending upward (see Figure 1). This divergence signals increased buying pressure, which can indicate weakening seller strength. It is usually followed by a change in the trend of the security from downward to upward.
















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