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I’m happy to keep the tract on AMRN…… you’ve been rude, made a mockery of my AMRN position because I did not sell, accuse me of blaming Thero for my trading or failure there of, hostile because I don’t believe in your techniques.
AMRN can not have a successful rally trading 1.4 million shares a day!
FFS……You trade and I buy and hold and I bat no better than 50% ( same as you) but we have far far different results was my point on the examples I gave you….why do you think Warren Buffett does not need charts?
Volume Always Precedes Price
Tom Aspray
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Markets
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This statement is one of the cardinal beliefs held by most technicians. It first came to my attention in the late 1970s when I read Joe Granville’s book New Strategy of Daily Stock Market Timing for Maximum Profit, where he wrote “stocks do not rise in price unless demand exceeds supply. Demand is measured in volume and thus volume must precede price.”
In the early stages of my career, I did extensive testing of this concept and developed my own methods of interpreting the on-balance volume. It is the volume indicator in which I have the most confidence. Over the years, I have explored the OBV in more detail and last year discussed multiple time frame analysis of the OBV in The Best Volume Indicator.
In that article, I discussed the long-term bottoming and topping formations in the OBV and why the relationship of the OBV to its 21-period weighted moving average can be so important. I touched on the bullish and bearish setups that I have often observed with the OBV, which is the focus of this week’s trading lesson.
Catching a major low in a stock or ETF is often difficult given the huge number of issues that are traded. I feel that tops are identified more frequently as after a long rally phase, a stock is often watched more closely. Therefore, changes in the volume and price patterns are noticed by more analysts.
FFS…… your manual is not the way to make money in the market.
On the NWBO and AMRN board you are batting way below 500 but given time you like almost all day traders bat 500….. given that you make as much as you lose like 99% of traders using TA are losers.
I don’t use your little anecdotal advice to make money.
I only buy and hold the vast majority of the time ….. have you ever held a stock 10, 20, 30 , 40 years.
You have any clue how much I lost in GM, X, BS, IBM?
You know how much I made buying MSFT after the 2nd split?
Any idea how much I lost in S, KM, JCP, Woolworth?
You have any clue how many shares of AMZN I bought in 2001?
You know how many TA said over and over AMZN was overbought. All the idiots just could not believe the rally.
I’ve lost million(s) alone in AMRN I now have a huge position.. this stock will rally.
Please do not use your TA manual you share with another 50K people to tell people how to trade.
Can you point us to one article you have written on anything to do with your knowledge of volume, of course you can’t everything you know comes from a 25 dollar manual and a 75 subscription a month to a charting service that another 100k people have.
Marzan pointed how NWBO had broken out on the AMRN board 6 weeks ago only problem it was on below avg volume since has fallen flat on its face….. did not stop him from pushing the stock.
Price alone can lead a stock higher ( AMEN) but not for a sustained rally….it will retreat….. stocks have sustainable rallies when institutions come in and buy heavily cleaning up all the loose stock…. Same as a decline in a stock.
Several months ago in July you were pounding the table on what a broken stock AMRN was and it was heading to new lows… obviously you wrong and I pointed that out at the time…. Volume was extremely low compared to the previous visit below 4 and it was never ever going to a new low then….
Your just as likely to say AMRN going down or up on any given day….. holding AMRN and not stupidly trying to time the stocks movement is by far the best strategy.
I wish you were not bullish all you do is JINX the stock.
FFS…
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BUFFETTS BOOKS ACADEMY: ADVANCED COURSE
LESSON 30: WHAT IS VOLUME
LESSON 29
COURSE OUTLINE
LESSON 31
LESSON SUMMARY
In this lesson, we understand the importance of stock volume. Although the volume won’t help intelligent investors learn the intrinsic value of a company, it can be used as a tool to help predict market behavior.
Investors are often fooled into believing that the market price of a stock is determined by all the shareholders. This idea is false. When we look at the volume of a company on any given day, we can quickly get a sense of how many traders are actually determining the price of a stock when we compare this number to the shares outstanding. This ratio – volume/shares outstanding – provides a good idea about the number of traders moving into and away from the company. When the company trades at a very low volume, we can generally say that the shareholders agree with the market price. Likewise, if the volume is very high, we can generally say that the shareholders disagree with the market price.
In the video, we demonstrate this principal with Wells Fargo (WFC). When you look at the historical market price for WFC, you will learn that on the day the volume was the highest in ten years, the market price was at an all time low. This idea of shareholders disagreeing with the market price when the volume is relatively high is an important point that stock traders can use to their advantage. Always remember, volume can mean that the stock is overpriced or underpriced. The peak or valley is for you to discern.
The takeaway from this lesson can be summed up to the following:
Remind yourself that traders only determine the price of the stock, not the value.
Stock volume can be an indicator for when to buy stocks or adjust your portfolio in general.
Related Article: What Is Stock Volume?
NEW VOCABULARY
Stock Volume
The stock volume is the number of shares that are being traded on any given day. This number should be compared to the shares that are outstanding. While it is hard to provide a stock volume threshold, a good indicator is to look at how the stock volume has developed over a period of time.
Shares Outstanding
The shares outstanding are the number of shares that are held by all shareholders. In the event that the company has bought back its own shares, those shares are no longer included in the number of outstanding shares.
LESSON TRANSCRIPT
Many don’t understand what volume actually shows about the current position in the value of the business. To understand volume, we will use a company on the stock exchange. It’s been in the news a lot, because of exemplary performance under stressful condition for finance companies. That’s Wells Fargo.
The current market price for Wells Fargo on July 6 2012 was $32.99. In the video is a chart for the market price for Wells Fargo.
If you’ve been taking all these lessons, you probably noticed that I never showed you a market price chart for any stock. That’s because I don’t care what the market price of a stock is. I care about the value of the stock. This chart tells what other people have traded this company for and where it’s at right now.
Pull up the stock ticker of Wells Fargo, WFC, in MSN money to see the number of outstanding shares in the business. It takes you to the top level page for the company. To find out their shares, scroll down until you see “shares outstanding”. Wells Fargo has 5.31 billion shares.
In the video is a graphical representation of how many shares there are in Wells Fargo. The circle represents the entire company. The dots are symbolic of the shares. There are 531 dots inside the circle, and each dot represents 10 million shares. That’s a lot of shares, but keep in mind that there are 5.31 billion shares inside.
The volume the shares traded from one owner to another in a single day. Wells Fargo’s volume is 17.9 million shares traded on this day. This might make anyone who comes to the page and just goes straight to the volume to say, “Oh, wow! Almost 18 million shares were traded!” Actually, the number doesn’t mean a lot. It just sounds a lot, but you need to put that in context. What percent is that of the company that was actually traded?
The symbolic representation of all the shares in the company is the one little dot highlighted in red. Think about this. It’s just one dot out of all the 531 dots inside of that circle. Those people determine the market price. When you take steps back and think about that, that tiny dot is the group of people determining the market price for the entire company for all those other shareholders that are holding their shares of that business. Only that small group is actually determining that price. Keep in mind that they aren’t determining the value of the company. They’re just determining the short term price of the company.
How can you use the volume to your advantage?
March 2, 2009 was the height of the stock market crash. The volume of shares traded on that day for Wells Fargo was 1.1 billion shares. Almost 1/5 of the entire company changed hands to new owners. That was the highest volume that Wells Fargo had in 10 years. How can you use this bit of information to your advantage as a stock trader?
When you go to the chart of Wells Fargo over the last ten years, right there is the lowest point of their market price. That should raise some interest for you. A large volume means the price is at peak or valley.
Now look at the numbers on Wells Fargo back on that day where they had enormous volume traded for the company. The market price was $7.50. The book value was $23.43. The EPS was $1.75. It wasn’t even in negative EPS situations as a bank stock. It was in positive situations. They’re also paying a dividend not listed in the video. There is 2.17 of debt for equity. Just to remind you, companies with debt to equity of.5 are recommended to be invested in. This debt to equity of 2.7 is extremely low for a finance company. However, it’s fine, because that’s their business.
When you view this while hitting all-time highs, you would’ve known this was probably not the bottom of the time for Wells Fargo. That’s easy for me to say 3 years later, but when you look at the number and volume being traded, a professional stock trader would identify this. The number of people selling shares far exceeds the number of people buying! It shows there are few people out here who aren’t scared and know the value of the company. They buy the shares of scared people who didn’t know the value of the company.
Use volume to your benefit!
Remind yourself that traders only determine the price not the value.
Use the volume to predict the right time to buy more assets or change into a better position.
FFS…..why don’t you try explaining volume and price to your friend meow.
Volume Precedes Price and Confirm Stock Price Patterns
Written by HTMW Team
Average buyers of stocks are a drop in the bucket in terms of how they impact daily stock transactions (volume) compared to institutional buyers. The institutional buyers only buy in large blocks. When institutional buyers get into the market, they cause significant increase in demand. Like any case of supply and demand, when demand increases and supply stays the same, price will increase. When a stock becomes desirable, it is more likely that supply may decrease (as current stockholders will be less willing to sell) which will cause even more price pressure. The more one institutional buyer impacts price and volume, the more other institutional buyers will get interested in the stock and be motivated to buy the stock as well.
It stands to reason then that the greater volume should take
place in the same direction as the prevailing trend
Now lets look at how volume can cause stock prices to fall. If institutional buyers start dumping a stock, the supply will radically increase. Typically, demand will decrease at the same time as other institutions will either 1) concur that the company’s value has declined or 2) be motivated by the others selling the stock. As we know, when sellers outnumber buyers the stock price will fall.
I can direct you to dozens of books and hundreds of articles that discuss volume before price.
Any apology would be welcome but you just could both do it.
Your continuing on a subject you know nothing about shows how stupid you are.
The above article is from Forbes.
Ask you new friend FFS to get your mind right
You are 100% wrong……Volume is the predecessor to volume and any sustained rally in a stock 99% of the time…limit orders? Wrong classroom….. nothing to do with a rally…..suggestion learn about something before you comment about my posts….. you are in the minor leagues….. if you think the simple volume explanation is over your head ask your new friend FFS….. he knows.
Volume before price is Stock Market 101.
“ Nevermind the AA dropout, I appreciate your perspective FFS ”
Your post 3 after mine……
Listen do you want to just leave me out of your posts yes or no?
And I’ll leave you out of mine
You backed JT for over a year from March 31 st of last year with thousands of posts doing your best to put anybody down if they had anything derogatory to say about him. What was you stupid saying bear/bulls …you probably would prefer to forget about it since you are the only one left that thinks he was a good ceo….. you know how get behind all the losers!
Of course you do….You just back losers…. JT, JB, FFS, yourself!
Fred Flintstone SR…… lOL
“An intelligent man is sometimes forced to be drunk to spend time with his fools.”
Hemingway
Dandburry…… there are thousands of charting services and each one will give you a different interpretation.. if charting was so simple how was it Fred Flintstone SR. AKA FFS was 8 out of 10 calls wrong when the stock came down from 9.25 earlier this year.
If charts were that easy to predict price it would be a self fulfilling.
And there would be no market….no one can time the market or stocks any better than a flip of a coin…. If it was possible the market would not function….Warren Buffett and his contemporaries are fundamental investors short term movements especially to the downside are only buying opportunities…..
Today given Buffett’s huge portfolio and cas he can not not beat S&P……give him 100 million only to work with and I would take him over a chartist ( TA) any day of the week.
If your convinced charts help you in your decisions it’s all ok I just have a different strategy.
Your a genius the stock is down 3-4 %…..how far Downare we going with your prediction…… 3-4% is a nothing burger……. Your post said better to put money elsewhere….. so you must have some idea of the imminent amount of the decline…… I could care less as you chartists only show up when your right.
Mr Obvious on a down day…. It could be 10% palatable if you ever did anything positive to help AMRN!
MM are buyers and sellers not investors….. they theoretically don’t care if it goes up or down….IF they were manipulators they could make more money pushing this stock up not down.
It was no walk down….. it was a lot of shares in a short time…what your talking about with the Lancet should have brought in big buyers….. I’m not selling…..would it not be a lot easier for the MM to run the stock 30-50 cents than struggling to make pennies……. Think about it…… somebody sold….. that simple.
Do you ever blame the MM when the stock goes up….. take this at face value and stop looking for excuses for when the stock goes down….. it’s comforting to no one!
It would be interesting to see a dual timeline on the 2 major legal battles infringement and Marjacs appeal.
I believe we will know the results of Marjacs appeal a year or more before the infringement trial starts.
Rose…..I was acknowledging JL’s service only….,nothing at all about you.
Best
Rose….. I appreciate and agree with your JL assessment……you know I appreciate his service in VN could not have been easy!…… you do you serve…… he leveraged that deployment many times like we might forget.
Capt. I am happy with the status quo…… I would like to give KM a year or 2 and see what happens….. he is doing everything realistically possible….. 2 years is not a long time and there is tons of good news coming in the coming months.
When it gets to 15 and sell then gets bought out for 35?
What a perfect study of human nature….. freshman Psychology class would have a field day.
Amrn is going above 15 without a BO….. for your own sake put the order in now for 15…. However guaranteed when this stock gets to 15 nobody is selling.
Micro manage the great fundamentals over the past 2 months….. the stock up 25% since KM took the reigns.
Yudilks…… we all know the stock price…… what’s your point?
Are you happy it is close to 5?
Captain….. top notch!
You have misinterpreted the chart ( I don’t like charts they do not predict the future but explain the past) the 5.00 low this week was made on lower volume than the previous attempts….. the stock is going higher regardless of what you see in the future.
“ Laurent Abuaf, recently appointed as senior vice president and president of Europe, further noted, “Throughout last year Amarin made great progress building the commercial infrastructure in Europe and has recruited and trained a talented team of nearly 200 professionals to execute VAZKEPA’s launch. We are especially pleased with our successful German launch event and look forward to executing our plans to launch VAZKEPA across multiple European countries before the end of 2022.” Mr. Abuaf continued, “Cardiovascular disease (CVD) is one of Europe’s biggest health crises, costing the European Union €210 billion a year,4 and resulting in 3.9 million deaths.5 Amarin has ambitious plans to tackle this growing healthcare burden by working in partnership with healthcare professionals across the continent to challenge the conventions surrounding CVD care.”
Perhaps JL was wrong…….right now they are maintaining 80k scripts per week and have been for a while….. the cash flow from US sales are supporting a big part of the EU expansion.. there is absolutely no reason to cut prices.
What “sources”? V is now approved for sale in Denmark?…. Have they launched?
Do you believe that if it was approved in Denmark AMRN would not PR that?
Maybe the old days.
KM on 2nd Q earnings call said they applied for Denmark. GB, France and I think Spain.
I believe he also said they were launching no more in 2021.
This last week he mentioned no new Approvals in Europe.
I think some clarification is needed from your “sources”…..
Yes…… great music …… we will figure it out…… my last post of the day
Have a good rest of your weekend !….. Party On!
Lol…… I’m in on something… I’m in agreement with everything in your post….. statue?
How about a massive party!
Ilt……. I hope and pray we are assigned sensible judges appointed by straight thinkers…. I agree with you acceleration of the deterioration of our rights is incredible… the decision affecting all of us have me wondering what is really going on
Jasbg……..you are correct on the Apotex settlement timing….. I believe Apotex wanted a better deal as they thought Hikma/ Reddys would lose appeal. Why they could only muster a similar deal to Teva’s deal three years earlier is because Thero was not dealing regardless of it The R-it results and FDA approval after the Teva settlement….. it makes no common sense why Thero would not be flexible….. Hikma CEO’s was pissed for that reason…. All IMO.
“Only 'real hope' for full recovery of US market still 'Marjac' in Court.”
You are not positive on KM’s current plan for US?
I think we have a massive win in Marjacs appeal work on our behalf.
8000 calls equals 800,000 shares……. You have 10-11 weeks I really hope it works out… that’s is a serious position…… best on that position to you!
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PD…… doesn’t that coin flip both ways?….. if unsuccessful stop the trial and announce results.
Md3434……. Interesting observation and concern….. it was a very ill conceived plan…..in 1995 we adopted a 6 month old baby from China it was a fun and interesting experience….. by 2000 the ratio of boys to girls was reported by the PRC was 120/100 which is an amazing ratio but from our understanding was actually higher…. The number of girls in orphanages was reported to be 3 million with only a fraction available for adaption that number also reported by the PRC was massively understated…. The girls that came out of that system when old enough to go out on their own were ostracized for not having a family with the majority never marrying.
The fortunate babies were left at train stations, police stations, etc late at night and then given to orphanages which in itself was illegal so pregnant woman whose family insisted on a boy had to hide their pregnancies…… the unfortunate girls were killed after birth or left to die……the conditions is most orphanages was/is horrible so only a small % of the orphanages were “open” for adaption. The PRC went back and forth between it being ok to having 1 child to having more…… in actual fact you could have more than 1 child anytime you just had to pay a fine which most Chinese could not afford or wouldn’t pay.
It’s a very plausible idea you bring…… the PRC could do absolutely do anything and everything illegal or not if they thought it would benefit their society….. the 1 child policy turned out to be a huge backfire!
Think of the old AMRN as the little league and the new AMRN as the SF Giants…..what AMRN did in the past has nothing to do with what they are doing now.
Thank you
Your keeping me busy with Bounce and the documentary