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crammerfool

03/12/10 2:39 PM

#522 RE: bluemonstr #521

Hi bluemonstr, regarding Buy/Sell Volumes....

I am not one that knows it all and I am still learning many things as I continue to trade stock and in being on this website.

When I refer to Buy and Sell Volumes, you have to think of it this way.

When a trade occurs from an Ask Price, then that is considered a Buy Volume. Someone is willing to pay a seller at their Asking Price.

When a trade occurs from an Bid Price, then that is considered a Sell Volume. Some Seller is willing to sell their stock at a Bidders Bid Price.

It can be kind of hard of at first, as I had to think about it when I came across that way to look at stock and not just in total volume by itself. Basically you are looking at how the trades seem to be occuring.

One bad thing is that shorters and MM can help push a stock down and not allowing it to flow as the real trading may wish to flow.

Big price changes can occur up or down more when stocks have low daily trading volumes, such as APPA has. There are many others that trade in the millions and tens of millions each day that does not have as much movement.

When there is such a large imbalance between the volumes, you could see at the end of day, a very large volume purchase or sell off to help. I think this happened for 3 out of the last 4 days.