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Is There A Way of Calculating the Total Volume and The Average Volume Of A Minor Uptick In A Stock?

Is there a way of calculating the Total Volume and also the Average Volume of a minor uptick or minor downturn in a major uptrend or a major down turn in a stock? The uptick may only last a few days before it rolls over into a minor downturn and resumes the upturn, in a bullish market. You could manually add up the volume for the days that it was in an uptick to calculate the Total Volume of the uptick and then also determine the Average Daily Volume, but is there an easier way of doing it, or is there a graphical way of doing it, so that the Average Daily Volume and the Total Volume of the uptick can be easily seen?

Best Answers

  • KevoKevo
    Accepted Answer
    I am not sure what you are trying to do, but there are several volume measurements available. The best way to get the Average Volume is to use a Moving Average on volume. You can overlay them onto the main plot, or put it in the indicator panel.

    Your uptick term is getting me confused. I think you mean uptrend instead.
    Uptick has a different meaning.

    Here is a way to see the total volume on any bar: the inspector.

    Other volume measurements you might want to look into are: Volume By Price overlay, Volume Weighted Average Price (VWAP). This is only available for Intraday.

    MFI is the RSI of Volume.
    ChiOsc is a nice volume metric.
    CMF measures money flow.
    PVO is MACD of Volume.

    Check the chart to see if it is undergoing a consolidation pattern. There are two types of Consolidation Patterns: Continuation and Reversal. If is is consolidating, then use the Accumulation/Distribution indicators: OnBalVol and Acc/Dist to determine if it under Accumulation or Distribution.

    P.S. I never calculate/look at hard numbers because to me that is getting into the weeds and takes too much time away from other important things.
  • KevoKevo
    Accepted Answer
    EquiVolume is a nice feature too. I would put it on a chart by itself. Otherwise, it will distort the other indicators. Hope this helps.
  • markdmarkd mod
    edited January 2015 Accepted Answer
    To build on Kevo's answer, one pretty good way to see the relationship of volume and price would be to put OBV behind price. This shows divergences pretty well. If you want actual OBV numbers, you can include it twice, with the second version below the chart, then use the inspect tool.

    Your approach is similar to Tim Ord's (comparing volume on successive legs to suggest future moves). You could google him for more details. His book is "The Secret Science of Price and Volume" - available in the Stockcharts bookstore - p.5.

Answers

  • I had a similar inquiry as SCAlchemist.

    In his book,"Secret Science of Price and Volume" Tim Ord had a methodology of analyzing trade setups using swing highs and lows, with the total average daily volume of the "leg" between the high & low identified on the chart (Mr. Ord called it the "Ord-Volume").

    Based on Mr. Ord's examples, it appears that the "Ord-Volume" could easily be adapted to the Zig-Zag pattern in StockCharts' Chartschool. Would this be possible to do on StockCharts?
  • Zig-Zag is based on High/Low range depending on the chart type you set. I don't think Zig-Zag uses volume. My guess is that you would have to determine the total volume for each leg that Zig-Zag shows on the chart. You can enter any value in the Zig-Zag parameter field and thus filter price movements on any value. I'm not sure if I interpreted your question correctly.
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