Hi Ya'llI was just wondering if there is anyway to tell if the daily volume of any given equity is predominantly buying or selling?ThanksKiwiwsteve
Of course prices reported on the exchanges are completed transactions. Hence, buying and selling transactions are always the same.However, when the price rises that should be an eager buyer and when it falls it should be an eager seller. Hence, you can count ticks up vs ticks down and get an indication. But for most purposes info that price is up for the day or down for the day is good enough.
Questions about “buyers vs. sellers” can be answered by pulling Time & Sales (T&S). Most investors don’t know how to access and/or interpret that info. But there are dozens of freely-available, easily-accessed and used technical-indicators that can give them a visual representation of whether a stock is being ‘accumulated’ or distributed’. Below are links to some, using the same, randomly-chosen stock. Which --if any-- of those indicators might be useful can only be determined by plotting lots and lots of stocks and then doing frame-by-frame walk-throughs. In other words, by doing basic, "get-your-hands-dirty-with-data" research, because once you have discovered a volume-based indicator that seems to give a reasonably accurate description of how the constant struggle between buyers and sellers is playing out, you've still gotta decide what you what to do with that info. Do you trade it, fade it, or ignore it? http://stockcharts.com/h-sc/ui?s=WMT&p=D&b=5&g=0...http://stockcharts.com/h-sc/ui?s=WMT&p=D&b=5&g=0...http://stockcharts.com/h-sc/ui?s=WMT&p=D&b=5&g=0...
re: Time & Sales (T&S). Time and Sales can be shown on TOS (thinkorswim) charts via the TD Ameritrade along the right hand side of the chart second tab down.Quillnpenn -
Quillnpenn, Good morning, and thanks for plugging TOS once again. I really do need to look at that platform more carefully, just because of its wealth of tools. The opening post asked a question about volumes and buyer and sellers. Someone else (in another forum, or maybe this one) had earlier asked a question about how to know when to buy "dips". Obviously, the two questions are related and can be tied together. An indicator like CCI (as Stock Charts plots it) offers a clear visual indication of "over-bought/over-sold". But it doesn't say much about "accumulation/distribution". But when CCI is paired with a volume indicator that attempts to show the interplay of buyers and sellers, then turning points can be more reliably identified and dips can be bought with greater assurance that one has, in fact, bought a temporary retracement from the trend one intends to trade and not the beginnings of an adverse move against one's position. Charlie--------------------------“Fade moves to new lows when volume dries up.” ( Brett Steenbarger)
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