Big Vol small candle ??

What does it mean ? I see sometimes a consolidation and then see a big vol candle in comparison to other days and yet a small green candle without any long wicks. What is the general reasoning behind all this ? Thank you

 

No comment as you did not tell us which stock.

There are a thousand reasons why the above happens.

 

yes

yeah i know that... but what im asking is the generalization of that why that happens.... sorry

 

OK.


There are a thousand reasons why the above happens.

 

Some rich guy sold the stock in his etrade account and bought back in his robinhood account. Maybe he want to avoid wash sale.

 

Ten might suffice? Living up to your name MAX!

 

OP needs to understand, asking the right questions furthers one's education.

Topic question is not one of the right questions.

 

Could be color blind traders executing trades. When color blind traders see candles, they just keep buying.




PS: you need to post the chart

 

%%
Volume is secondary so many times it means not much @ all;
IN SPY benchmark larger candles are better than small ones + assume you are on the right side of the trend...........................................................................................

 

There aren't a thousand of explanations here, just a few.

You are assuming that the volume you see is all related to one side, just because of the color.
The volume is an aggregation of both sides in most platforms, and the color will be determined by the winning side. A huge volume would mean that there is a lot of activity on that candle for both sides, and the resulting color will be determined by the winning delta.

For example 30 millions on the short side and 31 millions on the long side, will get to 61 million activity and the color will be green, just by 1M. Your volume indicator will show 61 M green.The price will change by 1M, hence the small candle.

What you are really after is the delta between both sides so you can determine if there is a strong side. Try to configure your volume indicator to show deltas only, or change to another indicator.

Another reason if that the volume is not accurate on OTC markets, the volume does not reflect the actual activity as there are many trades that are happening elsewhere.

But the primary reason is that you are looking for deltas as opposite to an aggregation.