What is significant volume on a stock?

Discussion in 'Strategy Development' started by clearinghouse, Oct 5, 2011.

  1. Let's say I believe in the concepts of support/resistance, like in my other thread.

    If I'm trading support/resistance in the first half hour, let's say I think 5000 shares is a "significant" trade size. I see someone break out of resistance with 5k shares in the first half hour and I'm confident in my break-out trade because I saw that 5k shares print. For the purpose of this post, disregard that this may be a dumb trade or dumb rule; just put faith in the assumption I believe that 5k is a large print and that it means something.

    Now, let's say it's lunch time. Accepting my hunch that a 5k share in the first half-hour means something, is it reasonable to loosen my view of what constitutes significant volume by virtue of the fact that we're in a regime where there's not that much volume trading? Is it unreasonable to believe that LESS THAN 5k constitutes significant trade size around lunch time?

    Sorry if this post sounds dumb, I'm trying to refine my intraday market intuition.