Implication Of Volume In Day Trading

deb99891 · #21 9th April 2008, 04:18 PM

Quote:

Originally Posted by aksoni

Big Volumes & little price movement does not neccesary mean that the prices will go up.
Because if you think that there so many buyers of the share at that time , then also keep in mind that there are equal or may be more sellers of that shares thinking to exit the stock.

If u are observing and trading by this Volume aspect than only enter the stock when the TBQ is much higher that the TSQ. and try to exit immediatly when you see the reverse happening,because some time this is only an attempt to rise the price of the stock by speculators/operators.

who is the speculator/operator?

really confusing

deb99891 · #22 9th April 2008, 04:27 PM

Quote:

Originally Posted by mitasatyajit

It is very difficult to explain the same here. However attached herewith the page of icicidirect for TBQ and TSQ. Please observe the behavior of the quantities, and analyse it with open mind :

Why the quantity changes take place.
In which situation the change occur.
Where is the price (at support or resistance) when the change occurs.
What may be the result of this changes.
Notice the result will be the same as u thought for it.

Just think a open market of fish and u r an observer standing beside the market.

In the morning there are 5 sellers with total 100 kg of fish. The number of buyers are say about 50 each wants to buy 10 kg of fish. Seller starts to sell fish @Rs 200/- per kg.

After some time when seller notices that demand is more than supply in the market, he will not agree to sell at 200/- but more than it say @ 250/- per kg.

But buyer wants to buy @180/- per kg

In this situation what will happen :

1. Buyer will agree to buy at 250/-
2. Buyer will compromise for quantity.
3. Buyer will not buy fish.
4. Any other things u can add with ur analysis.

Same thing may happen with seller also.

If no. 1 is true for buyer more seller will come to the market with more supply.
If no. 1 is true for seller more buyer will come to the market with more demand.

There will be a situation when buyer agrees to buy at higher price and will rush to buy fish and vice versa.

It is a great subject, I have given u some clus for thinking.

I think u will reply this post with ur valuable thought, so that we the other members can be enriched with that thought.

Regards.

again satyajit da
a long ago i have seen one trader was using a formula language to calculate the change of this tbq/tsq in % term.
the % was constantly changing on his terminal on real time basis
the platform was of anagram's moneypore tradestation
as i use pib n odin i do not have that facility here to put any formula
can u help a bit on this matter?
regards
deb

mitasatyajit · #23 9th April 2008, 05:08 PM

Quote:

Originally Posted by deb99891

again satyajit da
a long ago i have seen one trader was using a formula language to calculate the change of this tbq/tsq in % term.
the % was constantly changing on his terminal on real time basis
the platform was of anagram's moneypore tradestation
as i use pib n odin i do not have that facility here to put any formula
can u help a bit on this matter?
regards
deb

Ya it is true that, Tradestation has some indicators or formula in it which use TBQ / TSQ and/or Volume. But how u can feed the data of TBQ / TSQ into that !! In my experience, I could not get any data provider/s who feeds TBQ/TSQ data into any software. If u find anybody, please let me know.

If u can feed data in the software, then only u can think for formula / indicator / exploration. For the present just use human brain for analysis not computer brain.

As I said earlier, think it in open mind, u will get the result. There is no scope of speculator / operator, to be allowed in your brain. Let them do whatever they like.

Please do not judge the same only by greater number of buyer / seller. Watch the rate of change in it and watch the sentiment of the buyer / seller.

No. of buyer may be higher, but they want to buy at 150/- per kg (or upto circuit low), and they want that seller should sell at their price. Think when they will agree to buy at sellers price, or what will be the situation when seller agrees to sell at Rs. 150/- per kg.

What is the volume of trade, where buyer / seller both agree.

Regards.

kkseal · #24 9th April 2008, 08:44 PM

Quote:

Originally Posted by mitasatyajit

... But how u can feed the data of TBQ / TSQ into that !! In my experience, I could not get any data provider/s who feeds TBQ/TSQ data into any software. If u find anybody, please let me know.
...

Include me too.

Intraday data would be worth paying for (even if one wasn't an intraday trader) if TBQ/TSQ &/or Bid/Ask price-volume data was provided.

Regards,
Kalyan.

deb99891 · #25 9th April 2008, 09:08 PM

Quote:

Originally Posted by mitasatyajit

Ya it is true that, Tradestation has some indicators or formula in it which use TBQ / TSQ and/or Volume. But how u can feed the data of TBQ / TSQ into that !! In my experience, I could not get any data provider/s who feeds TBQ/TSQ data into any software. If u find anybody, please let me know.

If u can feed data in the software, then only u can think for formula / indicator / exploration. For the present just use human brain for analysis not computer brain.

As I said earlier, think it in open mind, u will get the result. There is no scope of speculator / operator, to be allowed in your brain. Let them do whatever they like.

Please do not judge the same only by greater number of buyer / seller. Watch the rate of change in it and watch the sentiment of the buyer / seller.

No. of buyer may be higher, but they want to buy at 150/- per kg (or upto circuit low), and they want that seller should sell at their price. Think when they will agree to buy at sellers price, or what will be the situation when seller agrees to sell at Rs. 150/- per kg.

What is the volume of trade, where buyer / seller both agree.

Regards.

satyajit da
ur analysis is really helpfull to me
one thing to add here is that in intraday trading when i see an unusual big volume traded then the method i allways apply is just to buy above the congession zone with a stoploss above the tail area.
now i think that ur analysis will help me to preposition the trade.
here my experience is that once the price get pass tht area it should never move back a tick( i meant usually vertical move take place)
i use intraday chart to trade this typical setup.
if price moved back then donot warry at all and get stopped out.
here no testing of the range is required.
plzz give ur valuable opinion.
regards deb

swagat86 · #26 9th April 2008, 11:26 PM

Interesting discussion

mitasatyajit · #27 10th April 2008, 01:03 AM

satyajit da
ur analysis is really helpfull to me
one thing to add here is that in intraday trading when i see an unusual big volume traded then the method i allways apply is just to buy above the congession zone with a stoploss above the tail area.

[Scene 1] Aggressive buyer, got many sellers at Rs.150/_. Others who were watching to seller come at Rs.100/- sees that fish will be out of stock - "let us buy the remaining immediately". They will rush to buy at any price.

[Scene 2] When seller sees that the buyers agree to buy at any cost / high cost, their friend sellers (or the buyer bought initially in big voume at lower price will be converted into seller) will come to sell with more fish. Rate of change in TSQ will increase at the same time TBQ will be same or rate of change will be decreased.

I Satyajit along with my friends usually enter market at Scene 2 See attached Pic 1. We do not know the flashback of the story and buy at the market cost without knowing the reason to buy. We baught fishes at the begining of January'2008 and now we have huge quantity of fishes with us. We will sell our fish aggressively at [Scene 1]. After seling all the fishes in our hand, we will say "Operators donot want that we should make profit, the share market is gambling and it is not for us, let us go for big bazzar to buy a plasma TV. When Scene 2 will be in progress we will buy fish in huge quantity".

now i think that ur analysis will help me to preposition the trade.
here my experience is that once the price get pass tht area it should never move back a tick( i meant usually vertical move take place)
i use intraday chart to trade this typical setup.
if price moved back then donot warry at all and get stopped out.
here no testing of the range is required.
plzz give ur valuable opinion.
regards deb

Attached herewith some pics for example.
Regards.

Satyen · #28 10th April 2008, 09:41 AM

Quote:

Originally Posted by mitasatyajit

It is very difficult to explain the same here. However attached herewith the page of icicidirect for TBQ and TSQ. Please observe the behavior of the quantities, and analyse it with open mind :

Why the quantity changes take place.
In which situation the change occur.
Where is the price (at support or resistance) when the change occurs.
What may be the result of this changes.
Notice the result will be the same as u thought for it.

Just think a open market of fish and u r an observer standing beside the market.

In the morning there are 5 sellers with total 100 kg of fish. The number of buyers are say about 50 each wants to buy 10 kg of fish. Seller starts to sell fish @Rs 200/- per kg.

After some time when seller notices that demand is more than supply in the market, he will not agree to sell at 200/- but more than it say @ 250/- per kg.

But buyer wants to buy @180/- per kg

In this situation what will happen :

1. Buyer will agree to buy at 250/-
2. Buyer will compromise for quantity.
3. Buyer will not buy fish.
4. Any other things u can add with ur analysis.

Same thing may happen with seller also.

If no. 1 is true for buyer more seller will come to the market with more supply.
If no. 1 is true for seller more buyer will come to the market with more demand.

There will be a situation when buyer agrees to buy at higher price and will rush to buy fish and vice versa.

It is a great subject, I have given u some clus for thinking.

I think u will reply this post with ur valuable thought, so that we the other members can be enriched with that thought.

Regards.

Hi
Satyajit da some basic doubt

1-At a perticlar time we see TBQ,TSQ is it total bid for buy/sell quantity at that perticular price level or total TBQ,TSQ present in the system

2-Why the quantity changes
Is it bcoz of supply and demand mismatch like TBQ>TSQ more demand if so How much greter TBQ from TSQ is considered as a ideal situation to trade ?

3- In Which situation it wil take place

We have 3 situation s
i-Price going down near to suppoert and then we saw TBQ >TSQ from TSQ>TBQ should we go long ?
but it may happen due to buy stop given by those who are short before near support and price may halt near support or move little bit upwards then continue its downtrend and situation becoming TSQ>TBQ

ii-Price Going up near to Resistance and we see TBQ<TSQ --short and same as above

iii- price moves in a sideways direction and we see TBQ>TSQ-long ?
and TSQ>TBQ- short

4- Or do we enter once situation changes like TBQ>TSQ from TBQ<TSQ go long and vice versa

5-What should be the remedy if trade dont go according to our plan

6- what should be the target or wahta are the condition for exit in such trades

Forgive me if these doubts seems silly and plz reply

(All for intraday trading )

Regards
Satya

Satyen · #29 10th April 2008, 09:49 AM

Quote:

Originally Posted by mitasatyajit

Ya it is true that, Tradestation has some indicators or formula in it which use TBQ / TSQ and/or Volume. But how u can feed the data of TBQ / TSQ into that !! In my experience, I could not get any data provider/s who feeds TBQ/TSQ data into any software. If u find anybody, please let me know.

If u can feed data in the software, then only u can think for formula / indicator / exploration. For the present just use human brain for analysis not computer brain.

As I said earlier, think it in open mind, u will get the result. There is no scope of speculator / operator, to be allowed in your brain. Let them do whatever they like.

Please do not judge the same only by greater number of buyer / seller. Watch the rate of change in it and watch the sentiment of the buyer / seller.

No. of buyer may be higher, but they want to buy at 150/- per kg (or upto circuit low), and they want that seller should sell at their price. Think when they will agree to buy at sellers price, or what will be the situation when seller agrees to sell at Rs. 150/- per kg.

What is the volume of trade, where buyer / seller both agree.

Regards.

Then how to know that seller agrees to sell at that level so price may come down and buyer bid even lower price and insted of TBQ>TSQ we see price going down and after some time situation changes to TBQ<TSQ ?

Or buyer agree to higher their bid as more demand is comming

Satya

deb99891 · #30 10th April 2008, 03:43 PM

Quote:

Originally Posted by mitasatyajit

satyajit da
ur analysis is really helpfull to me
one thing to add here is that in intraday trading when i see an unusual big volume traded then the method i allways apply is just to buy above the congession zone with a stoploss above the tail area.

[Scene 1] Aggressive buyer, got many sellers at Rs.150/_. Others who were watching to seller come at Rs.100/- sees that fish will be out of stock - "let us buy the remaining immediately". They will rush to buy at any price.

[Scene 2] When seller sees that the buyers agree to buy at any cost / high cost, their friend sellers (or the buyer bought initially in big voume at lower price will be converted into seller) will come to sell with more fish. Rate of change in TSQ will increase at the same time TBQ will be same or rate of change will be decreased.

I Satyajit along with my friends usually enter market at Scene 2 See attached Pic 1. We do not know the flashback of the story and buy at the market cost without knowing the reason to buy. We baught fishes at the begining of January'2008 and now we have huge quantity of fishes with us. We will sell our fish aggressively at [Scene 1]. After seling all the fishes in our hand, we will say "Operators donot want that we should make profit, the share market is gambling and it is not for us, let us go for big bazzar to buy a plasma TV. When Scene 2 will be in progress we will buy fish in huge quantity".

now i think that ur analysis will help me to preposition the trade.
here my experience is that once the price get pass tht area it should never move back a tick( i meant usually vertical move take place)
i use intraday chart to trade this typical setup.
if price moved back then donot warry at all and get stopped out.
here no testing of the range is required.
plzz give ur valuable opinion.
regards deb

Attached herewith some pics for example.
Regards.

yes
got ur valuable point
absolutely right u r
regards deb