In the Stock Signals, my Price-Volume Distribution calculator is a useful tool for me and my clients in getting a good feel of what traders are thinking. Do they want to continue to buy up the stock? Are they in a neutral position, eavesdropping with other traders’ next action? Are they poised to lock-in profits and initiate a trend reversal? You will find the answers by checking the stock’s intraday chart and the historical trend of the stock in the past few days. If I want to get the data quicker than checking the intraday chart, I use my Price-Volume Distribution calculator. Let’s talk about $URC, $JFC, and $BDO.
Yesterday’s (Tuesday) closing price and intraday low are 195 and 194, respectively. Today, $URC closed at 194 with an intraday high of 194.90. Since a big chunk of today’s volume is positioned at a price closer to yesterday’s closing than today’s intraday high, what do you think $URC players were thinking this morning? Were they willing to push this stock up or they were in a neutral position?
Online foreign brokers were the main drivers of $JFC today. Note that more than 2.1M shares were crossed trade by UBS today, resulting to this long green volume bar. Removing those crossed trade shares might put these bars into a nearly-perfect alignment.
If we will remove this long green volume bar from the picture, we will notice that the volume from 209 to 209.40 got the most number of trades. Today, $JFC printed a hammer candlestick. The presence of a hammer candlestick signifies that the upward momentum is only strengthening and bulls are not in total control of the situation yet. At a certain degree, I say that a hammer candlestick represents a “neutral-bullish stance”, if there’s such a word, among traders and investors. With that, we see on the Price-Volume Distribution table that the 209-209.40 range is above the midpoint of today’s intraday high and intraday low but not too close to the intraday high. The 209-209.40 range is in the neutral-bullish zone also as you can see in the table below.
What am I trying to point out here? In this Price-Volume Distribution table, you can get a good feel if traders are still willing to buy up or not, or if they’re eaves-dropping (neutral) with other traders’ moves for their next move also.
This month, I will give my Stock Signals subscribers an access to my personal Price-Volume Distribution Calculator and a complete guide on how to interpret the table and how to validate the interpretation. If you’re reading this and you’re not my client, I’m hoping to see you in my team because this is really an effective tool in our position trading strategy.
SB SECURITIES pumped $BDO up at 99.50. It closed at a Net Buy worth P69.5M on $BDO today. Forget that volume at 98.80. UBS crossed-trade half a million shares at that price. At a glance, the price-volume tandem can give you a quick idea of traders’ sentiment. We use this calculator to find intraday retracement levels. In vernacular, “Nagagamit namin ito in identifying kung saang price point kami pwedeng mag-abang.”
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