Volume X Price

Golden Retriever Trading

Golden Retriever Trading

Sorry for the noob question but I'm wondering if there is any indicator that simply multiples volume by share price.

Let me explain the rationale.

Conventional volume analysis says that in an up trending stock, the volume should be expanding. If it's contracting, then it's a warning sign that the trend may reverse.

However, I'm not sure if this is a good way of approaching volume. Volume only measures how many shares were transacted. If a stock doubles in price but volume is down 10%, that actually means there was 80% more money being transacted despite volume being down 10%.

So I did a little bit of searching, but all I could find was Price Volume Trend, and On Balance Volume, but this isn't exactly what I'm looking for.

Any advice?

Thank you
 
Golden Retriever Trading said:
Volume only measures how many shares were transacted. If a stock doubles in price but volume is down 10%, that actually means there was 80% more money being transacted despite volume being down 10%.
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IMO, you are looking at something that is irrelevant across instruments.

For instance, yesterday, BRKA traded 345 shares. Using rough numbers, 107 million of value.
APPL yesterday traded 25 million shares, using rough numbers, over 4 billion of value. Your approach of volume X price is irrelevant.

Determining what a low, mid, high, and extreme volume of each instrument is, and perhaps the price movement and conditions when such levels of volume have tendency to occur might yield something more relevant and dynamic. Just a thought. Good trading to you.
 
Golden Retriever Trading said:
Sorry for the noob question but I'm wondering if there is any indicator that simply multiples volume by share price.

Let me explain the rationale.

Conventional volume analysis says that in an up trending stock, the volume should be expanding. If it's contracting, then it's a warning sign that the trend may reverse.

However, I'm not sure if this is a good way of approaching volume........

So I did a little bit of searching, but all I could find was Price Volume Trend, and On Balance Volume, but this isn't exactly what I'm looking for.

Any advice?

Thank you
More...
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Some thing like that, but not exactly.
For example #1 on price volume ETF chart= SPY.[barchart.com] Good stock benchmark with good volume.
By the way plenty of good up-trends + good downtrends work, on less[smaller] than 50 day average volume.Want proof of that?? Study 52 + 104 week+ record volume volume on SPY; the trend reversed. So, in an up trending or down trending SPY, fine expanding volume did not confirm the trend, it helped reverse the trend.

Your welcome. Plenty of up-trends power on up with down sloping[less] volume ,especially if it hits/bumps 50 day average volume line. In other words down sloping [less ] volume, but still bumping 50 day moving average volume; can be a good uptrend.NOT a prediction, may lose value.:cool::cool:[Edit, i think thier price volume means its priced over $5.00??LOL]
 
Handle123 said:
Perhaps a question to ask is when does volume is added to stocks that were bought/sold in Dark Pools? Same day, next day, weekend?
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I prefer the weekend, as far as price goes+ uptrend or downtrend more than upstairs market.I also like WSJ charts; even though they consider volume irrelevant mostly.I record open price, but WSJ makes a weekly chart green/UP LOL, because of a monday gap down LOL .I use weekly close to close .

Ive noticed barchart is real slow to add volume on; but i dont think it messes up thier TA; but just have to be aware of that. Stair stepping volume, up or down may have worked much better =before TA became so popular:cool::cool:
 
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