Volume
FAQ
What is Critical Volume?
This when volume has met or exceeded the volume necessary to cause
the market to change it's directional trend. Critical volume could
either be a large singe increase in the VMA or the combination of
several concurrent volume signals.
What do you mean by the Market?
Whenever MarketVolume® refers to the "market", we are generally
referring to the S&P 500, S&P 100, Russell 1000, Russell 3000, and Dow
Jones Industrials indexes. The NASDAQ Composite and NASDAQ 100 indexes
also follow the trend of these indexes, but the support and resistance
levels may differ slightly.
What do you mean by Market Stage?
Up-Trend: When the market's
direction is generally up, despite any small corrections to the
downside.
Down-Trend: When the market's
direction is generally down, despite any small corrections to the
upside.
Support Corridor: This is a
range where the is a lot of volume to the downside, and every time the
index approaches the lower levels of the support corridor there is a
large amount of supporting volume (people buying) to keep the index
from crossing it. When the index is in a support corridor, one can
easily make several mid- and long-term investment decisions.
Resistance Corridor: This is a
range where there is a lot of volume to the upside, and every time the
index tries to break through the upper levels of the support corridor
there is a large amount of resisting volume (profit taking) keeping
the index from crossing the upper levels. When the index is in a
resistance corridor it is a good time to take your profits from your
long positions.
Up/Down-Trend Stage: Anywhere
from 1 - 6 months, with few exceptions.
Support/Resistance Corridor Stage:
Usually only a few days, but sometimes up to several weeks as we
recently have seen.
What do you mean by Market Trend?
The general direction of the market at any period in time. See Market
Stage and Market for more information.
What is a Volume Moving Average (VMA)?
The average of volume over a certain period determined by the
user. This period can be anywhere from 5-minutes to several days. By
using a VMA in your charts, you smooth out any non-relevant surges in
volume and are able to get a better picture of the volume as a whole.
With this information you can determine with accuracy the support &
resistance level of the market on both short-term and long-term
levels.
What are Concurrent Volume Signals?
This is when there are several large increased in the VMA over
several days. The combination of these volume signals cause the market
to change direction if the sum of these concurrent volume signals is
greater than or equal to the last volume signal that cause the
previous change in market trend.
Why is volume important?
When you look at a chart for a major market index such as the S&P500, you
see only a history of the price paid for a basket of stocks. What you don't
see is the total volume for the entire S&P 500 minute-by-minute or even day-by-day.
What you don't see can hurt you.
More...
How does the
service work?
Easy, after logging into your account at MarketVolume®, select your favorite
volume indicators and begin to get real time java charts for your selected
index. Analyzing volume changes, you can easy find local and major support
and resistance levels for the main stock indexes.
Why
are volume indicators important?
The force behind changes in market direction is trading volume. Volume is
most accurate gauge of activity, the real window on the market.
More...
How do I use MarketVolume's®
Indicators?
We have volume indicators that predict direction of all of the major indexes.
Select an indicator that best reflects the type of trading that you do (index
shares, index options or index futures). Changes in price direction is almost
always linked to a general increase in volume. Use the minute-by-minute volume
information in conjunction with volume moving average information to alert
you to the changes that are associated with changes in market direction. Use
built in signals to alert you to volume surges.
Are the MV Volume Indicators
easy to use?
Yes. You don't need special software or hardware. You can access all our indicators
right from your Internet browser. Our real time and historical Java charts
are fast and easy to use.
Can I set signals
for particular volume levels?
Yes. After analyzing the history of any particular indicator you will find
levels for the Volume MA where the index routinely changes direction. Set
alerts at those levels and wait, the computer will signal when those levels
are hit.
Can I get volume
information on specific stocks?
We provide volume information for major stock market indexes and our MV Select
stock combinations. Volume information for particular stocks is available
at numerous other sources, which can be found on our links page.
What if everyone used MarketVolume's
indicators?
Market movement is based of the aggregate decisions of millions of individuals
and institutions. All of them will never use the same system. Most traders
do not want to take the time to learn effective trading techniques or spend
the money for the latest market intelligence.
Are the MV indicators
appropriate for novice traders?
Yes. Our indicators are simple and easy to use. You can use our historical
indicators to confirm that whenever trading volume reaches a certain level,
a change in market direction will almost always follow. You can then set these
volume levels as signals and our real time indicators will let you know when
that level has been reached.
How do you
choose the stocks for your MV Select indicators?
We filter stocks from the entire market using a combination of market capitalization
and average trading volume (liquidity). We then hand pick stocks for each
of our MV Select indicators that best represent a specific index. For example,
YAHOO represents the movement of the NASDAQ composite very well.
What is
a Volume Moving Average?
A Volume Moving Average, or Volume MA, is the average volume of a stock, commodity
or index constructed in a period as short as a few minutes or as long as several
years. Since volume can be erratic at times, we find that the moving average
is the best predictor of changes in market direction.
Why is there
always a difference between the volume data on your site and the volume data
from other sources?
Our daily
volume numbers represent the sum total of all intraday (minute-by-minute)
volume points. If you add up all of a session’s volume data in one-minute
increments, this will always result in daily totals that differ from those
reported by sources using daily volume totals only. The discrepancy is
caused because trade cancellations and adjustments are factored into the
reports of those sources that issue daily totals only (as opposed to summing
individual intraday volume points).
My question is not included
in the FAQ How do I contact MarketVolume to get it answered?
If you have a question, send an email to
support@marketvolume.com. If
you have a suggestion, email comments@MarketVolume.com.
Due to the heavy load of emails, our support staff may have a difficult time
responding to your email immediately, so please give us 24 hours before expecting
a response.
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