Buying vs. Selling Volumes

[BradK]

Re: Buying vs Selling Volumes

^ hahaha

Hey... off topic alert! How did you get away with less than one hundred charactres???????????

 

[tech/a]

Re: Buying vs Selling Volumes

TH

I know what your getting at.
It wasnt the last Thursday of the month.

Ive not posted the price or dates in the hope that some smartie like myself doesnt search for the stock and cheat!---thats what Id do!

100 characters

This post isnt in the individual stock section.

 

[MichaelD]

Re: Buying vs Selling Volumes

You can easily tell if the bid or ask are being hit by simultaneously watching live market depth and course of sales. Turning that information into a positive expectancy trading system - now THAT'S the important question.

As for CommSec's most popular stocks list - I personally find this list invaluable. Almost all of the time, I'm buying what other CommSec clients are selling and vice versa. That makes me feel happy (and makes me profitable). When I'm going the SAME way - that makes me feel uneasy.

 

[fimmwolf]

Re: Buying vs Selling Volumes

You can easily tell if the bid or ask are being hit by simultaneously watching live market depth and course of sales.

Yes, but what can we tell using only the chart provided by tech/a ??

 

[Trembling Hand]

Re: Buying vs Selling Volumes

I know what your getting at.
It wasnt the last Thursday of the month.

I just like to try and prove signals wrong before I take them as being right.

 

[MichaelD]

Re: Buying vs Selling Volumes

Yes, but what can we tell using only the chart provided by tech/a ??

A very, very deep question indeed, far deeper than the mere specifics of the question.

What does a chart show? What can a chart show? What can't a chart show? What can't a chart do?

But I defer a direct answer to those that have greater chart reading expertise than I aspire to.

(I'm very nihilistic today - been reading some of Ed Seykota's work).

 

[Kauri]

Re: Buying vs Selling Volumes

one periods action on its own shows me... be interested.. nothing more.. nothing less...

it is the following days that prove/ disprove the initial action... mind you I am not looking to capture all of the trend.. the middle will make me ..whatever...

Everyone trades their own trades in their own way for...aaaaaahh... now where is that tread of JULIAS on halcolism...

Slainte
............Kauri

 

[MRC & Co]

Re: Buying vs Selling Volumes

I would say that is sellers volume as there's nothing on the chart to indicate a reversal

Island reversal perhaps.

Trend looks up, hasn't intersected the most recent pivot high yet.

Sellers tried to close that gap, buyers absorbed them and the bar closed in the higher portion. I would prefer if that bar did close the gap though and the gap down bar had some more volume, it was pathetic. No clear indication here for me, but I would want that gap to close soon or for prices to get on with it and proove an island reversal.

Perhaps post some live charts tech so then I can proove myself wrong 3 times in real-time.

No idea the outcome of this chart though.

 

[brty]

Re: Buying vs Selling Volumes

Hi I'll play,

Buyers and sellers came out to play, short term trend was down, longer trend up. There was enough buying strength to accommodate all the sellers in a narrower range than the previous day, with the close in the top third of the range.

Market bullish for mine.

brty

 

[brty]

Re: Buying vs Selling Volumes

Hi,

Tech, it is just furniture shifting after a bit of detective work.

Friday after option expiry, WPL May 08.

brty

 

[tech/a]

Re: Buying vs Selling Volumes

Hi,

Tech, it is just furniture shifting after a bit of detective work.

Friday after option expiry, WPL May 08.

brty

Clever brty.

Was the Friday NOT the day of expiry.
Now the chart has been exposed no point in continuing the other examples in it.

Anyway if you have a look at enough charts you'll pick it up.

All this watching wether bids or asks are hit------

 

[Trembling Hand]

Re: Buying vs Selling Volumes

Was the Friday NOT the day of expiry.
Now the chart has been exposed no point in continuing the other examples in it.

Anyway if you have a look at enough charts you'll pick it up.

All this watching wether bids or asks are hit------

Sorry tech have not yet got your point. Was this not options expiry.

 

[brty]

Re: Buying vs Selling Volumes

Tech,

A lot of the shenannigans associated with options expiry happen on the Friday.

I'll give you an example.

Back in the early '90's I made a terrible mistake in closing out an options position. Instead of selling 4 calls on BHP, I bought 4 more about 2 weeks before expiry. At the time I had many long and short option positions, I didn't check the contract note that was sent.

I was long 8 BHP contract at expiry, all in the money. I did not realise this error until after the market closed on the Thursday. Even though my account balance was not large enough to pay for the $120k trade I worked out a deal with my broker to have those shares assigned to me, and traded out of the position the following day.

That volume of trading occurred on the Friday, very much to do with option expiry.
I'm not currently trading options, so am not 100% up with the latest rules there, but assume many participants that are assigned shares after the close of trade upon option expiry will trade out of those positions the following day.

brty

 

[tech/a]

Re: Buying vs Selling Volumes

Was under the impression expiry was the Thursday.
Stand corrected if it was the Friday.

Agree with you both with regard to expiry.

I will find other examples.
There are 1000s.

 

[Trembling Hand]

Re: Buying vs Selling Volumes

It is on Thursday but most of the transactions happen after the market is closed. So the Brokers report them before the market opens Friday. That is why the Volume shows up on Friday.

 

[Timmy]

Re: Buying vs Selling Volumes

There are a few softwares that will display the bids being given or the offers being paid. This is subject, of course, to your data input allowing the software to do so and even the data provided by the exchange allowing your software to do so. End of day data, for instance, doesn't show this info (AFAIK) so it wont matter what software you use, it isn't there to display.

What software will do this?
Ensign
Investor R/T
Market Delta
are 3 that come to mind, but there are more. The ones I am familiar with come out of the US, nothing local that I know of (I hope to be shown to be wrong on this).

Investor R/T is the one I am most familiar with, some discussion of it here.

Whether the bid/ask info is of any value to you is another debate.

 

[kam75]

Re: Buying vs Selling Volumes

How do i find out on a daily basis the volumes of sales of a particular stock compared to purchases? I use Etrade and when i go to market depth > last 10 trades, i am unable to tell what is what?? Anyhelp would be greatly appreciated

What you want to use is the On Balance Volume (OBV) indicator.
It will let you determine whether its buying pressure (buyers in control) or selling pressure (sellers in control) of the stock price at the time. You can use OBV on any time frame, even intraday. Go to Etrade click on interactive chart and display OBV for the timeframe you're interested in. Use the intraday chart with OBV to gauge buying or selling pressure for the last 10 trades were. Easy Peezy.

Regards
kam75
_____________________________
http://www.sharesmadeeasy.com

 

[Timmy]

Re: Buying vs Selling Volumes

What you want to use is the On Balance Volume (OBV) indicator.

The OBV indicator is going to give an approximation only, due to the assumptions upon which the calculation of the OBV indicator is based.

This is from Steven Achelis' book Technical Analysis from A to Z, available free on-line at
http://www.equis.com/Customer/Resources/TAAZ/?c=3&p=82

"When the security closes higher than the previous close, all of the day's volume is considered up-volume. When the security closes lower than the previous close, all of the day's volume is considered down-volume."

So, individual deals are not assessed to ascertain whether it was the offer paid or the bid given on each deal, rather the assumptions referred to in the above quote are applied.

 

[MichaelD]

Re: Buying vs Selling Volumes

Hmmm

"OBV is calculated by adding the day's volume to a running cumulative total when the security's price closes up, and subtracts the volume when it closes down.

For example, if today the closing price is greater than yesterday's closing price, then the new

OBV = Yesterday's OBV + Today's Volume

If today the closing price is less than yesterday's closing price, then the new

OBV = Yesterday's OBV - Today's Volume

If today the closing price is equal to yesterday's closing price, then the new

OBV = Yesterday's OBV"

(from stockcharts.com)

So, if the PRICE goes up, the OBV goes up. If the PRICE goes down, the OBV goes down, and if the volume is large, it goes up/down more.


Doesn't seem to add any new information to the picture.

(aka just another lagging indicator)

 

[cuttlefish]

Re: Buying vs Selling Volumes

It is on Thursday but most of the transactions happen after the market is closed. So the Brokers report them before the market opens Friday. That is why the Volume shows up on Friday.

This is correct as TH has said. Options trading goes till 4:20 p.m. and assignment can occur later as I understand it (up till 7pm?). Assigned stock for put writers appears in their account the next day, for naked call writers that are assigned they can purchase for delivery on the following day without incurring late settlement penalty (t+4). So there would also be a lot of options related trade the day after expiry.