Disclaimer
Nasdaq in a month?

Up

The same as now

Down

I don't know

Volume Based Technical Analysis

About Volume


Volume Indicators Quotes

Yahoo
Google
Stumbleupon
Facebook
Digg this
Delicious
Twitter
"Changes in trading volume give you important information about changes in market sentiment."

"Minute-by-minute trading volume shows reversal points in the market, helping you know when to buy and sell!"

MarketVolume's proprietary technologies give you unique insight into market directions.

Stock Volume

Stock Volume is the number of shares of a security that were traded over specified period of time. Volume shows how many shares changed hands between a buyer and a seller.

Stock volume represent volume of a single stock (single public company), furthermore stock volume could be used to evaluate money flow in a single stock (security), analyze trading activity in this stock, define liquidity of a particular stock and by using volume and price analysis together define current sentiment and predict possible changes in the sentiment and trend of this stock.

Stock volume could be used to analyze only a single stock with the purpose of trading this stock, options or futures on this stock. Volume of a single stock does not reflect the health of the economy and cannot be used to evaluate an industry or stock market sentiment.

Index Volume

Index Volume represents the sum total volume of all stocks included in a particular index. Therefore, volume of the S&P 500 index is the sum total volume of all 500 stocks from the S&P 500 index basked. Thus index volume represent trading activity in a particular market sector or particular group of stocks that are covered by this index.

Index volume helps to define the money flow and sentiment in specific market sectors.  Analysis of volume and price of indexes helps to evaluate a particular industry and predict possible changes in the sentiment in this industry as well as volume analysis of some indexes may be used to define the health and sentiment of the whole economy (S&P 500 and DJI indexes for instance).

Chart 1: S&P 500 chart with reversal market by the huge volume surge

S&P 500 chart with volume and price analysis

With index volume based technical analysis you will know when it's the right time to buy or sell your security. It doesn't matter if you are not trading an index-derived security, as most securities follow the trend of the major indexes. You may use index volume to analyze index trend and predict possible changes in the sentiment and trend of this index with the purpose of trading Exchange Traded Funds (ETFs) on this index, options and futures on this index, index tracking mutual funds, options and futures on the ETFs of this index and stock from this index basked. As you see index analysis open far wider prospective for trading than a single stock analysis.

For instance S&P 500 index volume analysis could be and should be used to trade:

  • SPY stock (ETF that tracks S&P 500 index)
  • S&P 500 Index Options
  • S&P 500 Index Futures
  • Emini S&P 500 Futures
  • SPDRs Futures
  • Options on the S&P 500 index Futures
  • Rydex S&P 500 Bull and Bear Funds
  • and many other securities developed to track S&P 500 index performance

MarketVolume's Index Volume based technical indicators are the result of analysis based on the volume of all stocks in a particular index. This makes technical analysis an extremely accurate portrayal of overall market activity in real time. By using MarketVolume's Index Volume Indicators, you will have access to real-time and historical, intraday (up-to-the-minute), daily, weekly and monthly volume data for the major indexes, such as the Dow Jones Industrials, the S&P 100, the NASDAQ 100, the Russell 2000, the S&P 500, etc.

Exchange Volume

Exchange Volume represents the sum total volume of all stocks in a particular Exchange or stock market. MarketVolume's Exchange Volume indicators are the result of technical analysis based on the volume of all stocks in particular market. We give you signals of market change as easily understandable charts and analyze in real-time over 11,000 stocks on the NYSE, NASDAQ, and AMEX exchanges.

In opposite to the indexes, there are not a lot of securities that are developed to track the Exchanges' performance and which could be used for trading based on the result of the technical analysis applied to the volume and price of the Exchanges. However, Exchange volume data are widely used by professional and institutional investors to define the health of the economy and the sentiment of the whole stock market. Analysis of the volume based technical indicators applied to the Exchanges helps to reveal Bullish and Bearish markets, define bottoms of the stock market crashes and tops of the market bubbles. Thus, Exchange volume based technical analysis helps to trade with more confidence, select safe trading strategy, limit losses and increase profit.

MarketVolume's Exchange Volume indicators are excellent tools for informing investors where the whole market is going. Our signals are accurate portrayals of the market.

NEXT: Why Volume Analysis Why Volume

 Volume technical analysis, index, S&P 500, Nasdaq 100, DJI, exchanges, ETFs, technical indicators, trading, price, stock market economy, exchange traded funds

QQQQ Signals
Past 6 Months

10%

20%

Compound Compound
Margin

As of 3/18/2010

Buy / Sell Trading signals.

Type: 
Submit Email:


Start using our Professional Charts
and Make Money with our System!


Sign up for a 30-Day Free Trial Now!
(credit card not required)

 

Site Maps: Products | QQQQ Options | Trading System | Stock Exchange | Links
Analysis : Technical Analysis | Elliot Wave Theory | Analysis Source | Volume Tutorial | Market Timing
Trading : Options Trading | Inverse Funds | Dynamic Funds | QQQQ Options | Stock Market | Trading system
Index Shares : Index Shares | Index Shares FAQ | Investment Research | Books | Glossary
Glossary: # | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Glossary
 
Disclaimer | Privacy | Troubleshooting
© 1997-2010 Highlight Investments Group. All Rights Reserved.
3/19/2010 - SV1