Volume Interpretation

Discussion in 'Technical Analysis' started by El Guapo, Jul 10, 2009.

  1. Interpretation of volume as it pertains to share/contracts traded.

    How is volume recorded/stamped/represented when shown on a volume histogram at the bottom of a chart, or in the case of CV bars on a chart?

    Consider a bar of 1000. What does this imply? Is this a count of all buys and sells combined (traded) or as individual buys and sells. Is this 800 buys, and 200 sells or is it 500 buys and 500 sells?
  2. You buy 500 shares from some anonymous seller, the transaction is logged as 500 shares, and is dumped into the cumulative volume total for the minute/hour/day. It was 500 shares changing hands, and that's it. No reason to double count, as it makes no sense. It was one transacton where someone's buying needs were matched by a willing seller.
  3. ==================
    El G;
    1000 bar, counts as a sell, red volume bar.

    1000 bar counts as a buy , green volume bar....................
    :cool: And by focusing on a few, you may spot errors in volume, mosty underreported , it seems.