Replies to post #23988 on Sun Pacific Holding Corp (SNPW)

[Dolly Llama]

You are right when you say that for every sell there is usually a buy. In fact for every sell there is always a buy. Volume indicates trades, and of course a trade is when shares are sold by one party and bought by another.

The meaning of colors on bar charts is frequently misunderstood. Various platforms and various brokers use different systems to indicate various things with colors. Some use red and green. Some use red and green and yellow. Typically red is referred to as "a sell", and green as "a buy". But that doesn't mean that if you see a red volume bar there was only a sell.

On most systems when volume causes the price to uptick, then it is assigned the color green. And when the price remains the same or declines, it is assigned red. On some systems the color indicates whether the trade went through on the bid or the ask. Personally I don't find the colors useful at all. And they can cause a lot of confusion. For example if there is a lot of red, many will think there were more sells than buys, when in truth just as many shares were bought as sold. Because volume is only created when shares trade between a buyer and a seller. For me the direction of the graph is more interesting, indicating if the price of the stock is going up, down, or remaining the same.

Though I guess colors help for seeing where the price was going at any given moment. You can glance at the day's chart and say, "Well, over here this patch of trades took place while the price was going up, while over there the trades took place while the price was going down.

Hope this helps.

Here's an interesting article:

https://www.stockmarketeye.com/blog/reading-colors-in-stock-charts-green-and-red-explained/

[Apostolic1]

I look at it like this, if you put in a bid to buy a share, say for 44, and I want to get rid of my shares, I think 44 is a fair amount for my shares, so I decide to sell it. It would show as a buy because you put in for the buy and I filled your buy. Same if I put in an ask for 55 and you decide you want to buy stock and you believe 55 is fair, you buy my ask, it will show up as a sale, because my ask was filled. Hope this makes sense. So if you see a bunch of green, that means a lot of people put in bids, and then people decided to sell at that bid. Same as the red a bunch of people start selling their shares for what they want out of it and people buy them. In reality the buys = the sales. Just trying to breakdown why they put the colors the way they do. A lot of green showing people want into the stock and a lot of means people want out the stock, not necessarily for good, just to make a profit, and buy back in at lower price to get more shares to sell later.