Opening Volume

Discussion in 'Trading' started by jj_jere@hotmail, Jan 29, 2002.

  1. premarket analysis of the volume as it is reported (and this applies more so to the Nasdaq stocks) is the only dynamic (real time) information available.

    trying to rely, find, or invent a predictor of anticipated volume only takes one more step down the plank of good intentions, only to find that you're so over the line, that you're actually on the other pair of railroad tracks, and the market's opening (meaning that the opposing train is going to upset your day).

    perhaps having a charting package (use your existing one, don't acquire another one) that shows premarket/postmarket activity, might yield what you're looking for.

    Cheers
     
    #11     Feb 12, 2002
  2. I trade only NYSE equities and there seems to be no pre market trades in these issues.
    JJ
     
    #12     Feb 12, 2002
  3. gwb-trading

    gwb-trading

    JJ,

    Thanks for posting your results regarding the volume study.
    How large a set of stocks was looked at?

    My only other thought for further study is if there is a
    correlation of (price move in first 1/2 hour) / (first 1/2 hour volume)
    to the stock price landing up/down for the day. Also taking
    in mind the direction of the price move.

    Large price moves made on low volume at the beginning of
    the day would indicate that a max movement in that direction
    can be gained with a minimum amount of (wind) ... good
    acceleration. Unless the price whipsaws back and goes in the
    other direction when this happens instead of following the
    early trend....

    - Greg
     
    #13     Feb 12, 2002
  4. Greg: I'm using the 500 issues that make up the sp500. As I only have a couple weeks of data I'm waiting to collect more data before doing any major profitability study. Price change vs 1/2 Hr volume would be an easy look when I get to that point.
    JJ
     
    #14     Feb 12, 2002