Popular in Course
verified elite notetaker
Popular in Business
This 10 page Document was uploaded by an elite notetaker on Sunday December 20, 2015. The Document belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 6 views.
Reviews for Stock-Market-Analysis-Tools
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 12/20/15
Testing Stock Trading Tools Volume Analysis Visit MarketGeeks.com Free Trading Report Subscribe To Our Channel Tested 30 Years Of Stock Data Tested Every Major Indicator And Strategy Based Entirely On Computer Data Results Were Objective No Human Intervention Relationship Between Volume And Price Volume increase without any type of news or fundamental reports stimulating the stock or the stock sector Resulted in 78% of the stocks experiencing a large price changes within 2 trading days of the volume spike Volume Increases With No News The best part is out of that number 8 out of 10 stocks remained at the new price level while only 2 stocks went back to the previous price level after 5 trading days. This means that when volume drastically increases and stocks begin moving without any outside news that would explain the move, they end up either continuing moving or stay at that new price level for about 1 week. Volume Increases With News The stock experienced a dramatic price change about 85% of the time. But only 3 out of 10 stocks remained at the new price level while 7 stocks went back to their previous price level. When prices move either up or down when earnings or other information related to that stock or stock sector is released, the stock has already moved and will reverse direction very quickly to go back to the previous price levels. Ask What Is Driving Volume Higher? Volume rise caused by news is not a good reason to enter position. Most news driven volume reverses within 5 days. Volume rise that is not caused by news is a good reason to enter position. Stock will most likely stay at the new price level or more further within 5 days. How Much Volume Is Necessary In our test we used 75% increase in 5 day average volume Positions Were Entered MOC Positions Were Closed 5 Days Later MOC Things To Keep In Mind See Spikes In Volume Check The News If No Stock Or Sector News Odds Are The Move Is Real And Meaningful If Stock Or Sector News Is Present Avoid Or Fade The Move Thanks For Watching Visit MarketGeeks.com Download Free Trading Report Subscribe To Our Channel
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'