End of day increased volume - what does it mean?

Discussion in 'Trading' started by Technician, Nov 24, 2009.

  1. What can we infer when near the end of the day, stocks get significantly increased volume but the price is not abnormally pushed? Is there just suddenly more supply and demand at the same time?
  2. Moreso than the usual increase in volume at the end of the day? Because as far as I know that's just people's preferences about when they like to trade.
  3. I do not trade at closing time, but I would imagine traders who entered during the day would want to get out before the overnight margin kicks in and liquidates their position.
  4. Placid


    It really depends on what the price action is doing. Vol analysis in isolation is dangerous.
  5. speres


    It could mean a turning point but like whats been said dont look at vol in isolation,

    you can get vol increases in uptrends which is healthy for an up trend. For ex, if theres an established up trend, a hh on increased vol then thats very bullish...

    post some charts here and do some analysis in public, you wouldnt believe how much it helps you....

    I dont know how far along you are but, have a look at some wycoff or vsa stuff. I can give you a link for a free vsa pdf book if you wish.
  6. Google:

    "Volume Smile"

    It's one of the core building blocks for a VWAP Algo.

    In another words... it's a normal tendency for markets and there are underlying reaction to it...
  7. thank you for the replies.

    speres, I would very much like the vsa pdf book.

    TSGannGalt, thanks. I will look into it.

    will post charts later, but I'm surprised what I'm talking about isn't clear; this phenomenon happens all the time.
  8. here...
  9. ammo


    at the end of the day ,hedge funds, houses and locals are lopsided risk wise for overnite exposure,the increased volume at the end of day is a last minute race to get closer to neutral at the best price..there is a tell in there ,but i havent found the consistent advantage, big pip, have u figured it out?
    #10     Nov 26, 2009