Buy or Sell?

[JMowery1987]

Quote from ArchStanton:

If the volume is 10,000 shares, then 10,000 shares were bought AND 10,000 shares were sold. This constitutes an EXCHANGE of 10,000 shares. I don't see where the factor of 2 fits in.

Yeah, you are right, was in a rush and not thinking about that. I had a brain fart.


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Still, people determine the price of anything, and shares are exhanged between two people for that specific share. You can't trade 1 share to 2 people, you can only trade 1 share to 1 person. 1 to 1 exchange. You can try to sell 100 shares and yes multiple people might be able to take each share, but it's still a 1 to 1 transaction.

That is what this thread is about. The op thought that buying and selling where two different things, and they are, in the fact that it is an intent of a trader to either buy some stock, or sell it to another person, but in the end, it results in an exchange and the last exchange price is the last price, aka the price we see.

Just figured I'd clear that up for all newbies.

The mechanics of people moving markets though, that's a whole other discussion completely, and I'm sure there are tons of them. People exchanging shares at a higher price means the stock is worth more, and vice-versa, it's all human emotion and stuff.... I don't really care all that much, as long as shares are being exchanged quickly and spreads are tight and it moves. I am then happy.

 

[xxxskier]

T&S will show how much traded on the bid and ask. I use www.marketdelta.com to see transaction volume on the bid versus transaction volume on the ask. I would not use delta to look for trades, but it is very helpful as a confirmation for entries and exits. Delta works best with very liquid instruments, maybe an extremely high volume stock would work, but it is really designed for things like the ES, YM, etc.

 

[OXTrader]

Ok, I was not expecting such a conversation to continue, but ultimately it led me to what I was looking for in the first place!

Thank you to the folks who posted the webpages, that is exactly what I wanted to see!!!

Yay!

(I am not as crazy as I thought)

 

[Albrady]

You could find out that if you have high speed computer so that you can grab or condense the volumes bought for every minute at its price. if the volume where bought from the open price and at higher values you can then assume it a buy and if the volume sold at lower price then it is sell. Once you finish collecting all dells at each minute then take all day volume and subtract from it the sell volumes you end up with buy volumes. Total volume = Vbuy+ Vsell. this method usually used in Currency trading where you can know total short contracts and long for each day for each currency.


Second method I used to it because I'm chemical engineer- approximation from chemical Engineering: take total Volume per day

Then Total (volume) Balance= Total V( sell)+ Total V (buy)


Total V(buy or sell)= (High Price-Open)/(high-close)

If the closing price Less than (<) open price then this is total Vbuy

If the closing price > open price then this is total Vsell

How to use this equation?

For example if trading on Yhoo were 16,000,000 shares
And the trade day was such as

Open 33.39
High 33.64
Low 32.60
Close 33.00

Since the Closing Price< Open Price then use the formula to find the Volume as Total Vbuy:


Total Vbuy= (33.64-33.39)/(33.64-32.6)

= 0.39

This means the buy Volume was 39.0% of total volume and Total Vsell=100%-39%=59%

Total Vbuy= 0.39*16,000,000=6, 2400,000

To find the Total Vsell= Total Volume -Total Vbuy= 16,000,000-6,240,000= 9,760,000



I hope I added value for your discussion

Best luck

 

[Albrady]

Quote from Albrady:

You could find out that if you have high speed computer so that you can grab or condense the volumes bought for every minute at its price. if the volume where bought from the open price and at higher values you can then assume it a buy and if the volume sold at lower price then it is sell. Once you finish collecting all dells at each minute then take all day volume and subtract from it the sell volumes you end up with buy volumes. Total volume = Vbuy+ Vsell. this method usually used in Currency trading where you can know total short contracts and long for each day for each currency.


Second method I used to it because I'm chemical engineer- approximation from chemical Engineering: take total Volume per day

Then Total (volume) Balance= Total V( sell)+ Total V (buy)


Total V(buy or sell)= (High Price-Open)/(high-close)

If the closing price Less than (<) open price then this is total Vbuy

If the closing price > open price then this is total Vsell

How to use this equation?

For example if trading on Yhoo were 16,000,000 shares
And the trade day was such as

Open 33.39
High 33.64
Low 32.60
Close 33.00

Since the Closing Price< Open Price then use the formula to find the Volume as Total Vbuy:


Total Vbuy= (33.64-33.39)/(33.64-32.6)

= 0.39

This means the buy Volume was 39.0% of total volume and Total Vsell=100%-39%=59%

Total Vbuy= 0.39*16,000,000=6, 2400,000

To find the Total Vsell= Total Volume -Total Vbuy= 16,000,000-6,240,000= 9,760,000



I hope I added value for your discussion

Best luck

Sorry I need to clarify one thing to you I missed it regarding second method above here the correction:

Second method I used to it because I'm chemical engineer- approximation from chemical Engineering: take total Volume per day

Then Total (volume) Balance= Total V( sell)+ Total V (buy)


Total V(buy or sell)= (High Price-Open)/(high-close).......(1)

If the closing price Less than (<) open price then this is total Vbuy

use the equation (1) above

If the closing price > open price then this is total Vsell

use same equation but the equation should be modified to

Total Vsell=(high-Close)/(high-open)........(2)

How to use these equations?

For example if trading on Yhoo were 16,000,000 shares
And the trade day was such as

Open 33.39
High 33.64
Low 32.60
Close 33.00

Since the Closing Price< Open Price then use the formula (10) to find the Volume as Total Vbuy:


Total Vbuy= (33.64-33.39)/(33.64-32.6)

= 0.39

This means the buy Volume was 39.0% of total volume and Total Vsell=100%-39%=59%

Total Vbuy= 0.39*16,000,000=6, 2400,000

To find the Total Vsell= Total Volume -Total Vbuy= 16,000,000-6,240,000= 9,760,000