High volume with little or no price movement

[esolano]

guys, what's the usual cause/reason behind a stock with high trading volume but with little or no affect on price?

 

[saiter]

guys, what's the usual cause/reason behind a stock with high trading volume but with little or no affect on price?

I'd see it as a "swap". I like to think about what is happening intraday:

1. The price crashes after open and then builds up until the close equals the open
2. The price soars after open but then declines until the close equals the open
3. The day was pretty much flat, with some rises and falls throughout the day

Point 1: The current share holders were spooked and tried to rush out of the market super early (between 10am -10:15 am). No one was there to buy (because the buyers were hesistant) so they kept lowering their asking price until the price reached a reasonable level. At this level, some buyers who were looking for a bargain started accumulating the stock (probably because it hit support). All the other buyers on the sideline who were intially spooked are now inticed into the market because the price seems to have found some support (and they think that the worst is over). Eventually, more and more buyers keep coming in, the sellers (who are still holding their stock) can demand a higher price, and continue to do so until the closing price reaches the open price.

Try and interpret the other 3 points for yourself.

 

[johnnyg]

Which one are you trying to describe eso?

 

[esolano]

I'd see it as a "swap". I like to think about what is happening intraday:

1. The price crashes after open and then builds up until the close equals the open
2. The price soars after open but then declines until the close equals the open
3. The day was pretty much flat, with some rises and falls throughout the day

Point 1: The current share holders were spooked and tried to rush out of the market super early (between 10am -10:15 am). No one was there to buy (because the buyers were hesistant) so they kept lowering their asking price until the price reached a reasonable level. At this level, some buyers who were looking for a bargain started accumulating the stock (probably because it hit support). All the other buyers on the sideline who were intially spooked are now inticed into the market because the price seems to have found some support (and they think that the worst is over). Eventually, more and more buyers keep coming in, the sellers (who are still holding their stock) can demand a higher price, and continue to do so until the closing price reaches the open price.

Try and interpret the other 3 points for yourself.

Saiter, all 3 points make a lot of sense. Thanks. I was thinking along the same lines but wasn't too sure that this was actually happening all in a single day's trade.

 

[esolano]

Which one are you trying to describe eso?

Johnny, more the one on the right QBE, but without the fluctuation. Just a very small movements in price.

 

[beamstas]

Saiter, did you just make those up?

 

[tech/a]

Has to be taken in the overall context of the chart (Background).

In BOTH of these cases it was buying.

 

[saiter]

Saiter, did you just make those up?

They're based on what I've seen while watching some stocks intraday.