I’ve already shared information about a lot of my proprietary methods in stock trading and investing for free by means of article writing.
One of my favorite methods in data analytics is by checking the price and volume distribution of a stock to see if the ascent or descent in price is more likely to continue.
The price at the topmost part of my chart is the intraday high while the price at the bottom is the intraday low.
Here’s how I read my trade-volume distribution chart.
If the prevailing candlestick is red and the dominant range is closer to the intraday low than the intraday high, the descent in price is more likely to continue.
In the same way, the ascent in price is more likely to continue if the prevailing candlestick is green and the dominant range is closer to the intraday high than the intraday low.
Moreover, if the prevailing candlestick is green and the last price is higher than the volume weighted average price (VWAP), that adds up to my bullish conviction. But if the prevailing candlestick is green but the last price is less than the VWAP, it might want to tell us that there’s hesitation among the bulls.
Now, if the prevailing candlestick is red and the last price is lower than the VWAP, that adds up to my bearish conviction.
Because of my trade-volume distribution chart, I don’t need to check the 1-minute, 5-minute, 10-minute, 15-minute, 30-minute or any intraday chart.
At a single glance, I can tell if the majority of traders are transacting closer to the intraday high or low.
I can also identify the dominant range that got the biggest volume and the highest number of trades.
That helps me identify the best spot where I should buy or sell shares.
Is this my standalone method or indicator when identifying the best spot where to buy or sell shares of stocks?
This is not the standalone indicator or method that I use to have a data-driven projection of the stock’s trend.
I use this method in conjunction with my other proprietary methods. But this post is concentrated on my trade-volume distribution analysis. I will discuss the other methods I use, in conjunction with this, some other time.
Would you like me to teach you my complete method in identifying if the current trend of the stock is more likely to continue? Attend my Evergreen Strategy in Trading the Philippine Stock Market seminar so I can teach you in person the complete and detailed method.
Without further ado, I’d like to share with you my trade-volume distribution charts for ICT, AC, ALI, BDO, AEV, SM, SMPH, TEL, JFC, and SCC as of end of trading on May 28, 2019.
As a bonus, I’ve also mentioned the top 5 most traded and most voluminous prices per stock together with their VWAP.
If you’re an Equilyst Analytics subscriber, you can ask me some follow-up questions regarding these stocks in our Private Clients Forum for free.
Int’l Container Terminal Services, Inc. (ICT)
Most Traded Prices: 135.7, 135.6, 135.8, 137.3, 135.5
Most Voluminous Prices: 137.3, 135.7, 135.5, 135.6, 135.8
Ayala Corporation (AC)
Most Traded Prices: 892.5, 900, 900.5, 901, 897
Most Voluminous Prices: 892.5, 898, 900, 901, 900.5
Ayala Land, Inc. (ALI)
Most Traded Prices: 48.15, 48.1, 48.65, 48.05, 48.2
Most Voluminous Prices: 48.65, 48.15, 48.1, 48.2, 48.25
BDO Unibank, Inc. (BDO)
Most Traded Prices: 133.4, 132, 133.2, 133.1, 133.3
Most Voluminous Prices: 132, 133, 133.4, 134.9, 133.5
Aboitiz Equity Ventures, Inc. (AEV)
Most Traded Prices: 53.8, 53.75, 54.15, 53.85, 55.5
Most Voluminous Prices: 54.15, 53.8, 53.85, 53.9, 53.75
SM Investments Corporation (SM)
Most Traded Prices: 925.5, 924, 925, 923, 924.5
Most Voluminous Prices: 925.5, 925, 927, 924, 916
SM Prime Holdings, Inc. (SMPH)
Most Traded Prices: 38.7, 39.25, 38.75, 38.9, 39
Most Voluminous Prices: 39.25, 38.7, 38.75, 39, 38.6
PLDT, Inc. (TEL)
Most Traded Prices: 1290, 1277, 1284, 1294, 1285
Most Voluminous Prices: 1277, 1300, 1290, 1284, 1299
Jollibee Foods Corporation (JFC)
Most Traded Prices: 270, 272, 271.6, 271.8, 271.4
Most Voluminous Prices: 270, 271.6, 271.8, 272, 271.4
Semirara Mining and Power Corporation (SCC)
Most Traded Prices: 22.2, 22, 22.15, 21.8, 22.5
Most Voluminous Prices: 22.5, 22.25, 22, 22.2, 22.15
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