Showing posts with label Volume and Volume Average. Show all posts
Showing posts with label Volume and Volume Average. Show all posts

Tuesday, March 27, 2012

Average Price Calculator

Check it out.  Hope it helps.


Here is a great Excel spreadsheet you can use to calculate the average price of a stock when you a taking multiple positions not only at different share prices but different lot sizes.


File Format Is MS Excel




Click here to download the template

Friday, July 1, 2011

Definition: Volume and Volume Average

Volume and Volume Average

Definition:
Volume is the total number of shares of transacted during a specified period. Although this is a rather basic indicator, volume can provide some very powerful clues to anticipate price behavior.


Interpretation:
One interpretation for volume can be used to determine the strength of a trend, or confirm the movement of the price. During trending markets, volume tends to be positively correlated with the direction of a trend. In a longer-term upward trend, there will tend to be higher volume as the price goes up and lower volume as the price goes down. During a longer-term downward trend, there will tend to be higher volume as the price goes down and lower volume as the price goes up. If these characteristics are not exhibited, it can potentially signal the changing of the overall trend. This analysis can also be done on shorter and intermediate trends with certain characteristics. 
 
During sideways markets, a higher level of volume can mean that the price will break out of that trading range. 


Prolonged periods of lower volume can indicate high levels of uncertainty about the future direction of the price, often found in sustained sideways markets or market bottoms.