How the Volume would helps to determine whether the share is moving up or down?

Sasanka De Silva

Sasanka De Silva

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How the Volume would helps to determine whether the share is moving up or down?
Any acceptable modality to determine this?

abp1970

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NimeshaJK

NimeshaJK

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I'm kindaf new to the market so I'm not very much sure about this. But generally if huge quantities of shares are traded in consecutive days, the price will move up. don't know any theories as to why and how. But that's what I've been observing lately.

Jana1

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Normally big investors order higher quantity to the broker and they set the price limit in which they need. So that is broker's responsibility to buy that quantity. They can't buy that much qty at low price . So they need to go for little higher price to collect it. When they collect, retailers also will collect because of higher demand. This is basic theory behind the stock prices up.

Sasanka De Silva

Sasanka De Silva

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My apologies for confusing many.
All what I wanted to know was having huge quantity of shares of one company available for sell / buy is a good or bad sign, as far as the movement of the price of the share is concerned ?

Roboticfx

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Dear sasanka,
Huge volumes of shares make them to trade very slowly. You can get an idea from ATL and BLUE.X0000. The disadvantage is investors have to wait for a long time to sell shares or buy them. The advantage is if a downtrend occurred, it happens very slowly so no need to face big losses at once. There is time to settle down purchased shares at break even rate. Huge volumes can be seen in low price shares widely.

Following things which has mentioned below will be useful to you as well.

If the current buying volume is high and it's similar to the selling volume, that means there is a trend to keep share at the current price level.

If the selling quantity is much lower than the bid price, that means share price will raise up to the next price level of order book.

If the bid quantity is much lower, That means the share price will reach down to the next bid price level in the orderbook.

Sasanka De Silva

Sasanka De Silva

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Roboticfx wrote:Dear sasanka,
Huge volumes of shares make them to trade very slowly. You can get an idea from ATL and BLUE.X0000. The disadvantage is investors have to wait for a long time to sell shares or buy them. The advantage is if a downtrend occurred, it happens very slowly so no need to face big losses at once. There is time to settle down purchased shares at break even rate. Huge volumes can be seen in low price shares widely.

Following things which has mentioned below will be useful to you as well.

If the current buying volume is high and it's similar to the selling volume, that means there is a trend to keep share at the current price level.

If the selling quantity is much lower than the bid price, that means share price will raise up to the next price level of order book.

If the bid quantity is much lower, That means the share price will reach down to the next bid price level in the orderbook.

Any acceptable Ratio?

Roboticfx

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There is no any acceptable ratio. You have to get an idea with quantities.
Eg:-
BLUEX.0000 Bid quantity=256,365 Ask quantity=1,236,897
Bid Price=2.60 Ask Price=2.70
Can't you get an idea? It's simple. There's a big trend to reach price level to 2.50. (Because only 256365 shares to be traded. It's very low volume comparing to the ask volume) Very Happy

Now did your problem solved? If not, I would like to help you again.

Sasanka De Silva

Sasanka De Silva

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Roboticfx wrote:There is no any acceptable ratio. You have to get an idea with quantities.
Eg:-
BLUEX.0000 Bid quantity=256,365 Ask quantity=1,236,897
Bid Price=2.60 Ask Price=2.70
Can't you get an idea? It's simple. There's a big trend to reach price level to 2.50. (Because only 256365 shares to be traded. It's very low volume comparing to the ask volume)
Now did your problem solved? If not, I would like to help you again.

I am trying to grab as much fundamentles as possible in this field .
Thanks and God Bless you ! Very Happy

Roboticfx

Roboticfx

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You are welcome! Best wishes for happy trade! Very Happy

If you are unable to understand it, I will help you in a different way.

Genting

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if there is a above average volume being traded with a increase in price will give you a hint that price of that share may move up in coming days.

when there is large number of shares traded with significant price down, indicates possible collapse.

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How the Volume would helps to determine whether the share is moving up or down?

1 How the Volume would helps to determine whether the share is moving up or down? Wed Aug 31, 2011 9:09 am

Sasanka De Silva

2 Re: How the Volume would helps to determine whether the share is moving up or down? Wed Aug 31, 2011 9:46 am

abp1970

3 Re: How the Volume would helps to determine whether the share is moving up or down? Wed Aug 31, 2011 9:59 am

NimeshaJK

4 Re: How the Volume would helps to determine whether the share is moving up or down? Wed Aug 31, 2011 10:04 am

Jana1

5 Re: How the Volume would helps to determine whether the share is moving up or down? Wed Aug 31, 2011 1:11 pm

Sasanka De Silva

6 Re: How the Volume would helps to determine whether the share is moving up or down? Wed Aug 31, 2011 1:36 pm

Roboticfx

7 Re: How the Volume would helps to determine whether the share is moving up or down? Wed Aug 31, 2011 2:20 pm

Sasanka De Silva

8 Re: How the Volume would helps to determine whether the share is moving up or down? Wed Aug 31, 2011 2:32 pm

Roboticfx

9 Re: How the Volume would helps to determine whether the share is moving up or down? Wed Aug 31, 2011 2:39 pm

Sasanka De Silva

10 Re: How the Volume would helps to determine whether the share is moving up or down? Wed Aug 31, 2011 2:44 pm

Roboticfx

11 Re: How the Volume would helps to determine whether the share is moving up or down? Wed Aug 31, 2011 5:11 pm

Genting

12 Re: How the Volume would helps to determine whether the share is moving up or down?

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