High Volume Penny Stocks starting uptrends

jaideep · #31 28th July 2005, 11:25 AM

Quote:

Originally Posted by Traderji

Stock Volume is the daily number of shares of a security that change hands between a buyer and a seller.

It is simply the amount of shares that trade hands from sellers to buyers as a measure of activity. If a buyer of a stock purchases 100 shares from a seller then the volume for that period increases by 100 shares based on that transaction.

Volume is an important indicator in technical analysis as it used to measure the worth of a market move. If the markets have made strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move.

Volume is a trader's best friend. Few technical indicators give the experienced trader a better feel for the minds of his fellow traders and investors. The heights of their greed, the depths of their fear, the loudness of their panic, and quietude of their ambivalence. All of these emotional states are seen with volume.

Volume also shows us the footprints of big money, and unlike footprints in the sand, these footprints are there for all to see...and long after the fact. More immediate and less ambiguous than any complex indicator, volume pinpoints extreme tops and bottoms -or the areas of them- with amazing accuracy.

Additionally, unlike many indicators, volume is applicable to every timeframe. How can this be? Simple. Volume is simply a measure of sentiment, of human nature. And fortunately for us, human nature is the one ever-present constant of the stock market. Never forget that fact. Once you have your own emotions under control as a trader, knowledge of this profound fact will guide you ever after as reliably as the Northern Star guides a lone sailor across a vast sea.

Fantastic Traderji. Am confused as to what to say, praise the technical finesse of your exhaustive explanation of the relevance of volumes in trading or the beautiful prose & strong poetic undertones in this post. In all aspects Traderji, you really are someone to look up to. Am glad you moderate this forum.

avinash · #32 28th July 2005, 05:58 PM

Quote:

Originally Posted by Traderji

Stock Volume is the daily number of shares of a security that change hands between a buyer and a seller.

It is simply the amount of shares that trade hands from sellers to buyers as a measure of activity. If a buyer of a stock purchases 100 shares from a seller then the volume for that period increases by 100 shares based on that transaction.

Volume is an important indicator in technical analysis as it used to measure the worth of a market move. If the markets have made strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move.

Volume is a trader's best friend. Few technical indicators give the experienced trader a better feel for the minds of his fellow traders and investors. The heights of their greed, the depths of their fear, the loudness of their panic, and quietude of their ambivalence. All of these emotional states are seen with volume.

Volume also shows us the footprints of big money, and unlike footprints in the sand, these footprints are there for all to see...and long after the fact. More immediate and less ambiguous than any complex indicator, volume pinpoints extreme tops and bottoms -or the areas of them- with amazing accuracy.

Additionally, unlike many indicators, volume is applicable to every timeframe. How can this be? Simple. Volume is simply a measure of sentiment, of human nature. And fortunately for us, human nature is the one ever-present constant of the stock market. Never forget that fact. Once you have your own emotions under control as a trader, knowledge of this profound fact will guide you ever after as reliably as the Northern Star guides a lone sailor across a vast sea.

Excellent post,Traderji...............thanks!!

xyz · #33 28th July 2005, 11:53 PM

cool explanation in simple language for a beginner like me. Thanks

ashimindia · #34 29th July 2005, 08:52 AM

Dear Trader Ji,
Knew about the impact of volumes in any sphere but never in such poetic way. thanks

sharestock · #35 29th July 2005, 06:46 PM

Dear Traderji
Nice explanation about the impact of volumes....thanks

Regards

hometypist · #36 31st July 2005, 07:33 PM

Dear Amitbee,

Must be a silly question to you but would appreciate if you could let us know how you arrive at this peak, resistance, weekly low, weekly high, monthly low, monthly high. Is it possible for a novice like me to just learn or know from some charts on BSE/NSE what you have put down, if yes, could you please share this information with us.
Regards,

AMITBE · #37 31st July 2005, 07:47 PM

Hello hometypist,
Yes, you could go to both BSE and NSE sites for charting if you don't maintain a database.
BSE has a pretty good Metastock charting facility.
NSE too has an extensive database.
Just bowse around these sites and there's plenty to learn their.
Good luck.

ssnkumar · #38 8th August 2005, 05:37 PM

Really nice reading.
Hope many more posts from TRADERJI will flow like this:-)

-Narendra

Traderji · #39 9th August 2005, 10:39 AM

Quote:

Originally Posted by AMITBE

Simply magnificent, Traderji.
Your postings like this are so dearly missed.
Thanks.

Just ask and I will try my best to answer them!

kkz59 · #40 9th August 2005, 12:35 PM

Hi all

Any idea of Shree Krishna Polyester (the name has been changed and the share has also been sub-divided into FV of Re.1/-). It was quoted some time back around Rs.2/-. Is it a sell or accumulate ?

Thanks

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