Detailed chart analysis of past trading action
Identified where reversion and break-out trading occurred

The image below is the chart of Ultra Clean Technology stock ( Nasdaq Ticker Symbol: UCTT ).

It is a multi-days chart showing Composite Time Price Opportunity (TPO) Profile on the left side and Composite Volume Profile on the right side.

This is an unique charting technique and requires some explanation on how to read the chart.

This chart shows more information than the conventional graphical chart.  Reading this chart will stimulate your whole brain.  The left hemisphere of your brain which is responsible for logical, rational and analytical functions will be engaged by the numerical data portion of the chart.  The right hemisphere of your brain which is responsible for the intuitive and subjective functions will be engaged by the graphical portion of the chart.

This gives you an advantage of engaging your whole mind when it comes to trading instead of using just a section of it.

Showing Time Price Opportunity (TPO) Profile side-by-side to Volume Profile gives you a quick synopsis of

1. which price levels received the most trading volume
2. at what time during the trading session had it traded there
3. how many times it had backfilled to those price levels
4. where reversion trades worked for traders fading the move as price traded back and forth to form a cluster node
5. see where and when break-out trades occurred as price spends very little time trading there

(Click on image below to bring up thumbnail and enlarge the chart, hit refresh if chart image is stale)

Legends:

1. VAH = Value Area High
2. VAL = Value Area Low
3. POC = Point of Control (i.e. where most of the trading volume had occurred)
4. VWAP = Volume-Weighted Average Price
5. BOO = Break-out Octet.  Minimum stop loss risk on false break-outs
6. BDO = Break-down Octet.  Minimum stop loss risk on false break-downs
7. Each TPO letter represents half hour intervals
8. TPO letter A marks the beginning of the regular trading session
9. TPO letter M marks the end of the regular trading session

Company Profile and Fundamental Analysis

Ultra Clean Technology core business is a supplier of gas delivery system.  Their products inject multiple gases into reaction chamber at different stages of the manufacturing process.  Their customers are in the semiconductor, flat panel, solar, and LED industries.  Most of Ultra Clean Technology's revenues are generated from the semiconductor industry.

Ultra Clean Technology is also involved in other line businesses that are outside of the semiconductor industry.  They make minimally invasive surgical robot and sonic cleaner system for the medical equipment sector.  In the Research sector, they make scanning electron microscopes that use a particle beam of electron to illuminate a specimen and create a highly magnified image.

The two technological initiatives the company is currently focused on is expanding their manufacturing base in Asia and promoting themselves as a Systems Integrator.

 

 

 

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