Total Transaction Volume Versus Delivery Volume

#1
Hellow everyone,

Seniors please excuse if this a dumb question.

Volume is fundamental in any technical analysis. But then, do we consider the volume of total transaction on a particular day or the volume of actual delivery of that script on that particular day?

How do we get this delivery volume in our Bhavcopy?
 
#2
Hi,

Common, 5 days and still no reply or comments!!? Am sure there should be someone in this learned and experienced community who can throw some light. Please!
 

AJAY

Active Member
#3
Hi Begarkitta,

Your chart consists of "the price action" that had taken place by both delivery volume and non-delivery volume. As Price Chart is reflection of the actions of all participants there is no need to differentiate.

Happy Practicing Technicals
Ajayakumar
 
#4
Thanks Ajay, it was indeed very kind of you to take time to help a beginner.

Are you sure we should not distinguish between total transaction volume and the delivery volume? I was under the impression that "smart money" is gauged by the actual delivery while the transaction number only shows the day-traders and the clueless crowd. Please correct me if I am wrong.
 
#5
Hi Begarkitta,

It's really a very interesting thing that has been discussed here.I am not talking about the question but about the backend reasons behind this post ( which is the basics for success in markets , both trading and investing)... well we will go back to your question
I can give you two answers for this, one is stating that delivery volume is important and the other one stating that the total trade volume is important, so which one is correct? sometimes the first answer works and sometimes the second one works
Both are right based on fact that you need to know when to use what.
How do you know this?
It is based on your "REQUIREMENT" i.e what you need or what you want to measure.
It varies from person to person I might have a different requirement and you might have a different requirement, Generally what people do is that they do not identify their requirement but will search for the final solutions so when they encounter a problem they search for solutions in books, forums magazines, research articles etc (everything they come across) thus finally end up with a solution which might be 100% right or 100% wrong or anything in between(accuracy of it is not gaurenteed). But success requires a good amount of accuracy but we do not know if our solutions are above this good amount or not.
In the question that you have asked you did not mention any thing about what your requirement is ? Suppose if you are short term trader trying to predict a short term movement then the total volume would be beneficial to you (For example will the support or resistance hold? or can I trade the short term trade in this direction or not ... These are the questions.. In order to answer these if you need a total trade volume data (yes you need this) then that would be your requirement so you would opt for it ). suppose if your requirement is to identify wheather people are accumalating or distributing the stock over a period of time ( this would happen just before a major break up or down ) then you may need delivery volume ... Every thing depends on your requirement .... Nothing is right or Nothing is wrong untill you know what your requirement is ? but what we do is we try to find some ready made solutions with out clearly identifying what our requirement is it is just like buying a readymade dress with out knowing the measurements of the person who wears it, so it can fit or it cannot ......

I am not so good in expressing my ideas on paper so please try to grab the underlying point which I want to convey rather than focussing on some small examples that I have given


Regards
Pradeep
 
#6
A famous Chinese Proverb says,"Give a man a fish,you feed him for a day.Teach a man to fish,and you feed him for a lifetime."

In above explaination you can figure it out what corresponds to a fish for a day and learning fishing which feeds you for a life time
 
#7
hi
technical analysis uses volumes to get some information which helps it to take a decision. This information required changes for different technical analytical methods and conditions in which they are applied.
total trading volume gives certain information and delivery volume gives something else. simply compare the information required by the technical analysis and the information provided by them and use which ever matches perfectly. then it would work for you flawlessly...
before selecting the options first you have to read the question...
however it is not as simple as it appears...