Stupid Volume Question

pclark · Nov 24, 2008

OK, I am going to get flamed for this but, if I look at a Volume Indicator I would think I would see 0 then numbers incrementing upward but I see positive plus negative numbers Like -1000 etc... What do the negatives indicate? How do you read this? Sorry for sounding like an idiot.

hoodooman · Nov 24, 2008

I've seen anything like that. Perhaps it means the price is going down. Regular volume chart works for me.

Lucrum · Nov 24, 2008

Are you sure you're looking at volume?
Can you post a chart?

IShopAtPublix · Nov 24, 2008

http://www.investopedia.com/articles/technical/100801.asp

Pay a visit to investopedia on balance volume discussion.

If a security closes higher today than yesterday close today's volume is considered UP Volume and gets added to the running total if it is lower it is considered down volume and gets substracted.

ProfLogic · Nov 24, 2008

When Volume has to be interpreted you've created your own lag.

Try building volume into your chart, i.e. Constant Volume/Share Bar Charts. this eliminated the need for interpreting it.

murray t turtle · Nov 24, 2008

Quote from pclark:

OK, I am going to get flamed for this but, if I look at a Volume Indicator I would think I would see 0 then numbers incrementing upward but I see positive plus negative numbers Like -1000 etc... What do the negatives indicate? How do you read this? Sorry for sounding like an idiot.

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Sounds like OBV, or Upside-downside volume.

Actually prefer regular volume for several reasons;
including when i know[memory ] an average volume like SPY i can catch chart volume errors easily, usually.

So the quickest perhaps wise way to help you & simplify it;
may want to use regular volume bars & OBV........And in that order, so you can catch the errors that happen from time to time.

Also, its a good question;
any vol is secondary, to price,so keep that in mind.

Also volume bars are better if you are visual, perhaps;
if CPA type who likes numbers you may prefer the other volume indicators.

GE had record volume one day, turned out flat that day, not meaning much @ all, that day or that week.

pclark · Nov 24, 2008

Thanks guys I think OBV is what I was looking at. Thanks for the help.

Paul

Charly · Nov 25, 2008

Quote from ProfLogic:

Try building volume into your chart, i.e. Constant Volume/Share Bar Charts. this eliminated the need for interpreting it. [/B]

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Care to explain it via a chart please?

Thanks.

bighog · Nov 25, 2008

ProfLogic

Registered: May 2004
Posts: 3182

11-24-08 03:39 PM

When Volume has to be interpreted you've created your own lag.

Try building volume into your chart, i.e. Constant Volume/Share Bar Charts. this eliminated the need for interpreting it.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>.....

What kind of statement is that? A lag is a lag. Correct? Please do not try to intellectualize this game, this is about TRADING.

pclark · Nov 25, 2008

Quote from Charly:

#######################################

Care to explain it via a chart please?

Thanks.

Wouldn't using volume bars be building it into a chart?

Stupid Volume Question

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