Coding Volume

Thursday, Feb 28 2019 by


I’ve heard the term, going up on higher volume a lot and just wondering if there’s a short cut rather than looking at the charts. Below is a list of a few companies, with the 52 low date, sum of % gain days with volume* and sum of % loss days with volume*.  *From the 52 low date.


Question is - does the sum of the up days and down days show anything useful? Or is it more about the spikes in volume rather than the sum?

I would usually do a complete data back test of this but i feel like the stockopedia community can do better, so if anyone has suggestions on how to code something better - please let me know!


Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way


As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.

Do you like this Post?
4 thumbs up
0 thumbs down
Share this post with friends

2 Posts on this Thread show/hide all

HumourMe 28th Feb 1 of 2

The way I understand it is:

A spike in volume should be associated with a corresponding change in price. If it isn't, it is a sign of supply/demand being balanced, which is bad news for subsequent change and may herald a reverse of trend if supply/demand is exhausted. In an uptrend this is interpreted as potential 'distribution'. If a downtrend it may signal the bottom, especially if supply dries up.

I'm sure there are other interpretations, however, I think that large volume seems to herald either continuation or reversals, depending on the corresponding period price change.

| Link | Share
AnonymousUser605348 1st Mar 2 of 2

The one and only technical signal that still has value for me is lower lows on lower volume. A succession of these, near 26-52 week lows is a reasonable indicator of a downtrend ending, if not a turn to the upside.

Having said that I'd say you really should look at the chart. If there is big volume at a certain price, which you didn't see because you didn't look at the chart, I personally think it will alter your view of subsequent trends in volume (for the worse). Volume Profile is worth looking at. It's a little less subjective and really highlights "key levels".

| Link | Share

Please subscribe to submit a comment

Stock Picking Tutorial Centre

Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis