Increased Volume: Buyers or Sellers?

[youngone]

When reading charts and graphs, is there a way to know if the volume is going up because of buyers or sellers?

I notice that Commsec, has a table that shows the ratio of buyers and seller.

 

[LifeChoices]

Re: Volume Buy Sell

When reading charts and graphs, is there a way to know if the volume is going up because of buyers or sellers?

I notice that Commsec, has a table that shows the ratio of buyers and seller.

I think you can tell on some stocks. If you get a lot of volume - say more than 50% of the median for a particular stock, the share price is up and the ratio of buyers to sellers is high I believe you can conclude that the volume is being driven by buyers.

VMS is a good example of that - 80% more volume than usual, high buyers vrs seller ratio and a share price that went up 14% today on a tough day.

 

[tech/a]

If a high volume bar is followed immediately by another high volume reversal bar then the initial bar is selling.
Vice versa for buying.
So best to wait for next bar confirmation.
Low volume reversal bar following is a good thing and indicating a lack of conviction in the opposite direction.

There is much to reading range and volume but this is a start.
Catch you all in a few months and off to avoid (Hopefully) a Volcano ash cloud over Britain!

 

[daf89]

I am not a serious or experienced investor ; just $25k traded via e-trade.
Over the years I have wrongly identified large volume as a signal for an upward move, thinking it is buying rather than selling. It seems pointless to wait for the price to rise/fall after a volume increase to identify whether it is buying or selling i.e missing the boat!
Obviously for every seller there is a buyer BUT:-
On londonstockexchange.com every stock at the end of day shows daily volume split into buy volume (and value) and sell volume (and value) with each trade described as ordinary, automatic,crossed, uncrossed etc and trades highlighted as a Buy trade or Sell trade.
My question is, Can I get similar information on Daily Trades on the ASX? For free?

 

[tech/a]

I am not a serious or experienced investor ; just $25k traded via e-trade.
Over the years I have wrongly identified large volume as a signal for an upward move, thinking it is buying rather than selling. It seems pointless to wait for the price to rise/fall after a volume increase to identify whether it is buying or selling i.e missing the boat!
Obviously for every seller there is a buyer BUT:-
On londonstockexchange.com every stock at the end of day shows daily volume split into buy volume (and value) and sell volume (and value) with each trade described as ordinary, automatic,crossed, uncrossed etc and trades highlighted as a Buy trade or Sell trade.
My question is, Can I get similar information on Daily Trades on the ASX? For free?

So 40 sellers place sales at $ 20 and buyers keep buying at $20 right into these sellers
That is seen as buying . You can't possibly know wether supply has exhausted or if it will increase on the day of volume.
After you've watched your buy/ sell volume reports long enough you'll find that it's no better than 50/50.

 

[Mistagear]

So 40 sellers place sales at $ 20 and buyers keep buying at $20 right into these sellers
That is seen as buying . You can't possibly know wether supply has exhausted or if it will increase on the day of volume.
After you've watched your buy/ sell volume reports long enough you'll find that it's no better than 50/50.

I use an indicator on short term futures charts which splits the buy from ask or sold to the bid.
It can be quite useful but probably not what you first think would be the indication. for example, when all the volume is buying the ask, yet price fails to go higher you will almost always get a reversal to downside (demand becomes exhausted and new supply enters at lower levels).
This is because the unseen resistance was so great that demand was unable to push price higher.
You may have at first thought that all buying meant price would rise, yet it rarely happens that way.
There are several interesting things which come to light with this sort of info/indicator BUT. YOU REALLY NEED TO UNDERSTAND THE VOLUME/CAUSE AND AFFECT RELATIONSHIP before the information becomes even remotely useful and even then what you have when splitting buys and sells is limited help at best.

 

[joea]

I am not a serious or experienced investor ; just $25k traded via e-trade.
Over the years I have wrongly identified large volume as a signal for an upward move, thinking it is buying rather than selling. It seems pointless to wait for the price to rise/fall after a volume increase to identify whether it is buying or selling i.e missing the boat!
Obviously for every seller there is a buyer BUT:-
On londonstockexchange.com every stock at the end of day shows daily volume split into buy volume (and value) and sell volume (and value) with each trade described as ordinary, automatic,crossed, uncrossed etc and trades highlighted as a Buy trade or Sell trade.
My question is, Can I get similar information on Daily Trades on the ASX? For free?

Daf.
Before VSA was exposed on this forum, traders had been trading price and volume for years. The tradeguider site never existed.

You have not wrongly associated large volume with and upward move.
You have maybe not linked the large volume to the move that follows.

Wyckoff's work is available on the internet. If you are interested.

Find Wyckoff Schematics: Visual templates for market timing.

Or Market Technician Issue 55. They have the above edited in a slightly different way,
and refer to Issue 51.
To get larger graphs visit MTA JOURNEL/SUMMER - FALL 1994.

It will clearly explain Accumulation and Distribution.
You will also see the phases through which the Trading Range passes as conceptualized by the Wyckoff method and explained in text.

I will also post an Elliott 5 wave schematic on the appropriate thread to give and indication of the short covering,institutional and retail buying.

The VSA concept is understanding the link between price and volume and the move that follows, and that concept is not easy to learn as tech/a has pointed out..but it can be learnt.!!
joea

 

[daf89]

Thanks for the replies.
Tech/a
you may well be right, I have only just stumbled across the site that identifies volume as buy or sell; but I have been watching Range Resources, (RRL in London, RRS on ASX) and when Volume identified as Buy volume is much greater than that identified as Sell volume the price defies Market sentiment.
I would like to observe a few stocks on the ASX where Volume is identified for me as Buy or Sell volume and that is why I asked if such a site existed

Mista gear ,
you are right too, I know by experience it is not easy, but limited help is better than nothing and that is what I seek.

Joea,
I know my limitations and your response was about 2 feet over my head. I did Google your Wyckoff references and my experience is that when the Boy Scout jumps he either drowns or breaks his leg in a dry creek; meanwhile there is someone on the bank shouting he should have jumped earlier or later.This is probably because I only hang out with people with similar limitations to myself. Thanks for your trouble anyway.