Is their any soft wear out their that will calculate a stocks projected volume on the basis of what has been traded at a particular time? tia Happy Trading
I do not know of any SW offhand to do this but the calculation is not difficult. For example, if the market has been open 2 hours and your stock has traded 1,000,000 shares, do the following: 1,000,000 / 2 = 500,000 ; 500,000 X 6.5 (hours the market is open) = 3,250,000 shares for the day. Some details to consider: 6.5 works for the normal trading day. I am not sure how to advise you how to take into consideration trading volume premarket or post market so keep that in mind. Often times volume will be greatest at the start of the trading day. The further into the day you get, the more valid your projection will become. Hope this helps, Louie
Try First Alert (www.neovest.com). It could adjust for the fact volume is not evenly distributed throughout the trading day. I had good luck trading stocks who at 10am looked to be on pace for 3x or greater volume. Then the mutual funds either got smarter or quit buying as much.
Qcharts has some nice items that fit together for what you desire. the three columns on their quote sheet that work for me are: volume 65 day av vloumne and "unusual". Unusual compares a days volume to the 65day average as a %. Therefore you know at any time how volume is progressing. I happen to buy on volume BO's before price begins to move. I have a precalculated value that I know has to be met pro rata on the day of the break out. One drawback used to be the SEC. They flag you for trading ahead of price as an insider when you use something like the above. (I trade many accounts and when I enter them with a buy, it signals to SEC that I "know" something.) The SEC gets over their mistaken views in about two years or somewhat longer. Your idea is a great one if you trade stocks. Instead of using it for end of day, use it to time price Break Outs instead. It cuts way back on the risk of entering and having to set stops and price targets, etc. I use the attached chart for pro rata volume on 5 min ES charts. It works the same way as the stuff I described. I draw paths on the sheet for bars on 5 min chart. When the path zigs, it tell me that a break out is coming and according to the zig which direction, long or short. It cuts through a lot of monitoring messiness. the chart is calibrated at the bottom for types of trades as well. When I am in a fast trend I do not fill in the paths until I see I need to for an exit or reversal. Look at the ES on 5 min today and see the volume BO's that set up about 8 trend rides today. It works the same for stocks on a scale that is about 1/50th of the attached sheet. If you have ever heard the expression "taking candy from babies", this sheet is where they got that idea or maybe vice versa.