Volume turnover analysis

Discussion in 'Strategy Building' started by duard, Feb 13, 2007.

  1. duard

    duard

    Wasn't there a book out a while ago about volume turnover analysis?


    Anybody use this technique?
     
  2. taowave

    taowave

    I think you are referring to Steve Woods "Float analysis"...
     
  3. duard

    duard


    Yes, that's it.

    I took a cursory look into the method awhile ago but don't think I gave it enough thought. I'm seeing patterns in various issues and instruments which suggest this type of analysis could be fruitful.
     
  4. taowave

    taowave

    it certainly makes sense on a fundamental level.I checked out his website yesterday,but havent looked very closely..I may buy his new book...
     
  5. duard

    duard

    It's an interesting concept insofar as it may help to tease out the type of participation. Short-term vs long term participants. An idea of the "swing."

    X volume to go Y points then a high probability of reversal or consolidation. This could lead to higher probability trades.

    I use this type of analysis but have yet to quantify in enough detail to make some statistical assumptions.
     
  6. mokwit

    mokwit

    Yes, but not exactly as described by Steve Woods. You have to understand why multiple float turnovers occurr and what the real float is.
     
  7. duard

    duard


    Yes. I agree. I think my understanding is inadequate in this area. But I am going to think more about this topic. Any guidance from the more experienced traders would be appreciated.


    Trading is a learning process. I'm just glad to make money. But it helps me relax and enjoy the process more if I can understand the mechanics.
    :p
     
  8. taowave

    taowave

    Do you use float analysis in your trading??

    Do you use the stockshare trading software??

    Thanks,

    Allan
     
  9. You will need the Free Float number that exclude shares held by company officials and insiders. May be a problem getting hold of this info. Outstanding shares number is no good.
     
  10. mokwit

    mokwit

    taowave, yes and no.
     
    #10     Feb 13, 2007