Trade and volume are two of the important things I must check before I make a short-term or a long-term investment decision in the stock market.
The ascent in price is not more likely to continue if it’s a green candlestick and volume is less than 50 percent of the stock’s 10-day volume average. A more convincing ascent in price is when volume is higher than the stock’s 10-day volume average. The logic is simple. If the price is increasing but volume is flimsy, it means investors have not seen any convincing matter that would make them want to buy the stock up. The same is true when the candlestick is red.
Also, when you see a green candlestick and when the most traded and voluminous range on my Trade-Volume Distribution charts is closer to the intraday high than the intraday low, the ascent in price is more likely to continue. On the other hand, the descent in price might continue if it’s a red candlestick and the dominant range is closer to the intraday low than the intraday high.
The price at the very top of my Trade-Volume Distribution charts is the intraday high. The one at the very bottom is the intraday low.
I’ve also made it a practice to position my transaction (buying or selling) within the dominant range or at or near the VWAP. Usually, the VWAP is within or near the most traded and voluminous range on the chart.
What’s the rationality behind this idea? It’s the concept of Nash Equilibrium. You can read my further explanation about this page for the Investment Guide for Long-term Investors.
This afternoon, I’d like to share with you my Trade-Volume Distribution charts for the following stocks. Please pay attention to the timestamp on the chart so you know the data covered in generating these charts.
Know that these are not stock recommendations. I randomly picked these stocks from the Most Active list as of the time of generating these charts.
If you’re one of our clients at Equilyst Analytics and you have follow-up questions about any of these 10 stocks, please ask in our Private Clients Forum so I can give you more details that are exclusive for subscribers only.
Most Traded Prices: 862.5, 863, 838, 858, 865
Most Voluminous Prices: 852.5, 862, 863, 865, 862.5
Int’l Container Terminal Services, Inc.
Most Traded Prices: 139, 139.9, 140, 139.5, 139.6
Most Voluminous Prices: 139.9, 140, 139, 139.7, 138.8
Jollibee Foods Corporation
Most Traded Prices: 285, 280, 281, 280.6, 281.2
Most Voluminous Prices: 281, 285, 280, 286, 280.6
SM Investments Corporation
Most Traded Prices: 891, 893.5, 893, 892.5, 890.5
Most Voluminous Prices: 890, 891, 890.5, 891.5, 894
Ayala Land, Inc.
Most Traded Prices: 47.1, 47.15, 47, 47.5, 47.05
Most Voluminous Prices: 47, 47.1, 47.05, 46.95, 47.5
BDO Unibank, Inc.
Most Traded Prices: 131, 130.9, 130.8, 130.1, 131.2
Most Voluminous Prices: 131, 130.9, 130.8, 131.2, 130.1
SM Prime Holdings, Inc.
Most Traded Prices: 39.05, 39.1, 39.15, 38.45, 38.65
Most Voluminous Prices: 38.95, 38.8, 39.05, 39.1, 39.15
Most Traded Prices: 5.53, 5.55, 5.46, 5.54, 5.58
Most Voluminous Prices: 5.44, 5.27, 5.32, 5.55, 5.53
Alliance Global Group, Inc.
Most Traded Prices: 13.88, 13.86, 13.84, 13.82, 13.76
Most Voluminous Prices: 13.56, 13.88, 13.58, 13.68, 13.7
Most Traded Prices: 1254, 1255, 1256, 1252, 1252
Most Voluminous Prices: 1252, 1254, 1245, 1255, 1250
Let Me Guide You Further
Access my investment guide for long-term investors, trade setups for short-term traders (daily videos), and direct access to my consultation service through our online Private Clients Forum when you subscribe to Equilyst Analytics.
Moreover, I conduct workshops on my personal and proprietary strategy in stock trading and investing. Check out my schedule of seminars near your area and buy your ticket immediately to reserve your seat. Seats are limited and reservation is on a “first come, first served” basis.
I hope this helps. If it does, please let me know in the comments Thank you!