Price-Volume Distribution. It’s a presentation of the relation between price and volume. I couldn’t get any simpler description than that. What’s in it for a trader or investor to know the price-volume distribution of a stock?
Well, it can be used in many ways. Knowing the stock’s price-volume distribution helps you identify the prevailing traders’ sentiment over that stock at a glance. For example, if the larger volume bars are printed above the middle area of the chart (towards the upper-end) and the intraday high is higher than yesterday’s closing, that could be a confirmation of the bullish sentiment. On the other hand, if the larger volume bars are printed below the middle area of the chart (towards the lower-end) and the intraday low is equal or lower than yesterday’s closing, that could mean bears are trying to be in control of the situation.
You can also check the trend based on the intraday chart (1-minute, 5-minute, 10-minute, 15-minute, etc) of a stock. That’s my alternative. By using the Stock Signals’ Price-Volume Distribution calculator alone, at a glance, I can tell the trend. It helps me identify where most traders are printing their transactions. I can also check if there’s a crossed-trade behind a long volume bar and the brokers behind those crossed-trades.
This helps me make a quick yet data-oriented decision in trading. Instinct helps. I don’t discount the value of that for I am applying it in my real-time decisions, too. But instinct alone won’t help you make more wins than losses. So you better have to have the tools that you need so that decision-making won’t be a painful thing to do.
Have you checked my Exposed Trade Alerts articles? All of the decisions we do in the Stock Signals, whether we’re talking about stocks in the Trade Alerts (section for short-term traders) or stocks in the Investors’ Picks (section for long-term investors), we’re heavily-dependent on data and information. Trading and investing are enjoyable when you know how to process and mix and match the data that you have.
In this article, I’d like to share with you the Price-Volume Distribution charts of the top 5 gainers and top 5 losers by trade value as of May 11, 2016.
Let’s begin with the top 5 gainers (not in the right order).
BLOOMBERRY RESORTS CORPORATION ($BLOOM)
JG SUMMIT HOLDINGS, INC ($JGS)
NOW CORPORATION ($NOW)
PHILEX PETROLEUM CORPORATION ($PXP)
PREMIUM LEISURE CORPORATION ($PLC)
Here are the top 5 losers (not in the right order).
ABS-CBN HOLDINGS CORP. – PDR -($ABSP)
ALSONS CONSOLIDATED RESOURCES ($ACR)
ATN HOLDINGS, INC. A ($ATN)
LT GROUP, INC. ($LTG)
SSI GROUP, INC. ($SSI)
In the Stock Signals, every single decision we make is based on data. If we don’t have the data to back our decision up, there’s no reason for us to execute it. We don’t rely on rumors. We don’t rely on people’s random and non data-oriented posts on Facebook. Whether you’re a short-term trader or a long-term position investor, there’s a room for you in the Stock Signals. I have created the Trade Alerts for short-term traders and the Investors’ Picks for long-term position investors. There’s a forum where you can ask for my technical analysis. That’s where I post intraday updates on stocks that are in the Trade Alerts and Investors’ Picks tables.
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