How to explain 10x volume and price not moving much?

Discussion in 'Trading' started by pavlov0032, Feb 7, 2010.

  1. As shown in the picture..

  2. It's hard to view your photo, try a better color contrast.

    Often times when volume spikes and prices doesn't move it because the supply is being absorbed quickly, a floor in the market. This is often a sign of reversal. I think VSA calls is end of a rising market in an uptrend.
  3. this is a purely intraday move.. there was close to 10X avg volume and price has not moved a bit, the volume spike is in the center (volume superimposed on chart)
  4. dark pools, algorithmic trading between firms...
  5. time and sales had 1x1 bid/ask..
  6. When everyone agrees that the current price is a good price, volume can go up without price changing much.
  7. wutang


    What stock is this? Maybe it was a block trade negotiated off exchange and then printed on exchange. Or a trade from a crossing network. If the buy and sell volume at a price is equal even if it's a huge number of shares it wouldn't move the price.
  8. I believe what is going on here is that a very large block trade is occurring off exchanged and being reported the the consolidated tape in a delayed manner. For example, a stock is doing it's normal volume and normal liquidity being displayed on the book. Two parties agree on a block trade for an amount of stock that is much larger than the average daily volume at the price where the stock is currently trading. The parties then report the trade to the consolidated tape, possibly hours after the trade takes place and thus it shows up on your chart. My software allows me to see charts with just data from New York which would probably eliminate that print (although ECN volume and price action is important so I'm not recommending only looking at New York). I think this is what is going on but someone may know otherwise.