Uncovering a Hidden Value Area for Apple AAPL Shares

What are our Color Value Area Charts revealing about a key magnet price area to watch in Apple (AAPL)?

Let’s take a look, starting with the Daily Chart:

The TradeStation Indicator is the Trigger Charts Radar Indicator, designed to show “Market Profile” concepts in a colorful, visual format.

For simplicity, focus your attention only on the yellow lines (and the tight red clusters near the yellow lines) which represent “Time at Price,” or significant levels where both price has traded at “high volume” nodes (levels).

Keeping it simple, we can look back to prior yellow lines and compare them to current yellow lines on the chart.

We see a “hidden” triple node (three yellow lines) near the $ 95.00 per share level which should be our current focal point.

Above that we see a node into $ 100 per share which appears to be a likely target towards which price is being pulled.

Yes, there’s more you can learn from the chart above, but let’s just focus on the Magnet Node into $ 95.00 and the upper line from October 2012 into $ 100 per share.

We can zoom-in for intraday or swing traders to discover more short-term nodes (yellow lines) for planning trades:

The 30-min chart – which is a more traditional “Market Profile” style representation – highlights three short-term value areas from July through August.

First, we have the lower cluster (as I showed on the Daily Chart) into the $ 95.00 to $ 95.00 per share level (key magnet).

Next, we have the current cluster where price is trading currently into $ 97.50 per share.

Finally, we have two smaller clusters above price near $ 98.75 per share.

In general, price tends to gravitate (trade) toward a target cluster through “Open Air” which are represented as Blue Zones, or levels that aren’t Value Areas.

Price can move quickly through Blue Zones toward Yellow (or tight red) zones.

Whatever strategies you’re using to trade Apple (AAPL) shares, keep these value area clusters in mind as targets and inflection levels (like magnets).

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Corey Rosenbloom, CMT
Afraid to Trade.com

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Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

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