You and I have access to various data from our respective online stockbroker.
Having access to that data is an equalizer.
How I use that data is what sets me apart from other traders.
I decided to make my proprietary Price-Volume Distribution chart generator for any company listed on the Philippine Stock Exchange.
If you want to know the traded prices and the volume transacted per price, where do you go?
Often, you check the intraday chart of the stock.
Whether you pull up the 1-minute, 5-minute, 10-minute, 15-minute, 30-minute, or 1-hour intraday chart, you cannot identify which prices were traded the most and got the biggest volume.
Why don’t you try it to believe it?
Log into your online stockbroker’s account now and pull up any type of an intraday chart for any stock.
Tell me if you can identify the price points that were traded the most and the price points that got the biggest volume in 1 second on that intraday chart.
I have created my proprietary Price-Volume Distribution chart generator.
Literally, in 1 second, you and I can tell which prices got the biggest volume and the highest number of trades.
There are many reasons why I created my Price-Volume Distribution chart generator but I’ll give you two reasons.
These two reasons will also answer this question: “Why do I need to know the prices that got the biggest volume and the highest number of trades?”
1. I want to know the prices that got the biggest volume and the highest number of trades in 1 second.
There’s a high probability that the share price of the stock will revisit a particular price point or range that has the biggest volume and the highest number of trades in the current trading day.
In other words, I want to know the “favorite price point or range” of the current trading day.
Here’s a few logic behind it.
If I want to buy the stock but the current price is already above the price point or range that has the biggest volume and the highest number of trades, I will wait and set my asking price at or near that price point or range.
If I want to sell my shares but the current price is below the price point or range that has the biggest volume and the highest number of trades, I will wait and set my bid transaction at or near that price point or range.
Now, tell me, doesn’t it put you at a significant advantage when those who do not have an access to our Price-Volume Distribution charts would just have to make their “best estimate” of which price points got the biggest volume?
2. I want to know where the majority of the volume is posted near the intraday high, intraday low, or at the median of both.
If your stock hits a green Day Change but you see on the Price-Volume Distribution chart that the majority of the volume is registered near the intraday low or below the median of the intraday high and low, what does it tell you then?
I’ll give you the answer: That’s a clue that the intraday bullishness of your stock isn’t that strong yet. The intraday bullishness has not taken a solid ground yet.
Other traders might think, “Yes, I’ll enter a new position now. It finally has a green Day Change.”
They do not know if there was a cross sale and it caused that green Day Change. The share price might revisit the red zone anytime soon.
Now that’s another unfair advantage.
I’ll demonstrate what I mentioned above with actual charts.
Let’s start with RRHI.
Which price got the highest volume? It’s 83.95.
On my Price-Volume Distribution chart generator, I can see that a huge cross-sale was transacted by Deutsche at 83.95.
You cannot see that cross-sale even if you’ll stare on your intraday chart until your eyes cross, but I can see that in my chart generator.
Because of that, I will wait and monitor RRHI between 82.00 and 83.50 by the next trading day (at least on the first 15 to 30 minutes of trading) to get a confirmation of the traders’ sentiment.
Again, you won’t see the huge cross-sale made by Deutsche at 969.00 on your intraday chart, but I see that on my chart generator.
Compare the number of trades registered at 969 with the other prices below it.
Then notice the huge difference in the length of the volume bar of 969 with the ones below that price. By mere observation, you can already suspect a cross-sale made at 969.
This chart tells me to monitor SM between 949 and 954 by the next trading day (at least within the first 15 to 30 minutes of trading).
I have two interpretations on my Price-Volume Distribution chart for MPI.
- The price at 4.59 may act as an intraday support by the next trading day.
- If my first interpretation becomes false within the first 30 minutes of trading, watch MPI within the 4.50-4.60 range.
I guide stock investors by giving them stock recommendations.
I call my stock recommendations as Top Stock Picks.
One of the reasons why they transferred to Equilyst Analytics is that (not my words but theirs) there’s no one whom they can ask for an end-of-day update for each of the stocks Truly Rich Club recommends.
On the other hand, there’s a Private Clients Forum for all of our customers at Equilyst Analytics. They can post their questions for each of the stocks that I recommend.
Each of the stocks that we recommend has its own thread in the forum.
On top of that, we automatically publish an end-of-day update for each of the stocks that we recommend in its own thread.
You don’t need to ask. We do it proactively.
One of the charts that we post is this Price-Volume Distribution chart.
This chart is also one of our bases when identifying the best Buying Range we set for our Top Stock Picks.
How much is the monthly subscription to the Truly Rich Club? P497.00 a month.
How much is the monthly subscription to my Top Stock Picks? P399.00 a month.
I’ve just talked about one of the many things that put our clients at an advantage.
It’s a no-brainer to decide if it’s worth it to subscribe to the Top Stock Picks.
Join the tribe of #WeAreBetter investors. Subscribe here.
Latest posts by Jaycee De Guzman (see all)
- SM Prime Holdings (SMPH): Analysis for the Long-term Investors - December 14, 2018
- BLOOM, ALCO, VITA, MRSGI, PIZZA: Their Top 5 Prices with the Biggest Volume and the Highest Number of Trades - December 14, 2018
- IRC: Buy Near 2.33 or Catch It Below 2.16? - December 13, 2018