Frequently Asked Questions
Volume
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- What is Critical Volume?
- What is a Volume Moving Average (VMA)?
- What are Concurrent Volume Signals?
- Why is volume important?
- How do I use MarketVolume's® Indicators?
- Are the MV Volume Indicators easy to use?
- Can I set signals for particular volume levels?
- Why is there always a difference between the volume data on your site and the volume data from other sources?
- My question is not included in the FAQ How do I contact MarketVolume to get it answered?
What is Critical Volume?
This when volume has met or exceeded the volume necessary to cause the market to change it's directional trend. Critical volume could either be a large singe increase in the VMA or the combination of several concurrent volume signals.
What is a Volume Moving Average (VMA)?
A Volume Moving Average, or Volume MA, is the average volume of a stock, commodity or index constructed in a period as short as a few minutes or as long as several years. Since volume can be erratic at times, we find that the moving average is the best predictor of changes in market direction.
The average of volume over a certain period is determined by the user. This period can be anywhere from 5-minutes to several days. By using a VMA in your charts, you smooth out any non-relevant surges in volume and are able to get a better picture of the volume as a whole. With this information you can determine with accuracy the support & resistance level of the market on both short-term and long-term levels.
What are Concurrent Volume Signals?
This is when there are several large increased in the VMA over several days. The combination of these volume signals cause the market to change direction if the sum of these concurrent volume signals is greater than or equal to the last volume signal that cause the previous change in market trend.
Why is volume important?
When you look at a chart for a major market index such as the
S&P 500, you see only a history of the price paid for a basket of stocks. What you don't see is the total volume for the entire S&P 500 minute-by-minute or even day-by-day. What you don't see can hurt you.
The force behind changes in market direction is trading volume. Volume is most accurate gauge of activity, the real window on the market. When you see big volume surges it means that a lot of shares are changing hands, which means you see climax of panic selling or greedy buying which pushes the market in oversold/overbought condition.
How do I use MarketVolume's® Indicators?
We have volume indicators that predict direction of all of the major indexes. Select an indicator that best reflects the type of trading that you do (index shares, index options or index futures). Changes in price direction is almost always linked to a general increase in volume. Use the minute-by-minute volume information in conjunction with volume moving average information to alert you to the changes that are associated with changes in market direction. Use built in signals to alert you to volume surges.
Are the MV Volume Indicators easy to use?
Yes. You don't need special software or hardware. You can access all our indicators right from your Internet browser. Our real time and historical Java charts are fast and easy to use.
Can I set signals for particular volume levels?
Yes. After analyzing the history of any particular indicator you will find levels for the Volume MA where the index routinely changes direction. Set alerts at those levels and wait, the computer will signal when those levels are hit.
Why is there always a difference between the volume data on your site and the volume data from other sources?
Our daily volume numbers represent the sum total of all intraday (minute-by-minute) volume points. If you add up all of a session's volume data in one-minute increments, this will always result in daily totals that differ from those reported by sources using daily volume totals only. The discrepancy is caused because trade cancellations and adjustments are factored into the reports of those sources that issue daily totals only (as opposed to summing individual intraday volume points).
My question is not included in the FAQ How do I contact MarketVolume to get it answered?
If you have a question, send us an email to. Due to the heavy load of emails, our support staff may have a difficult time responding to your email immediately, so please give us 24 hours before expecting a response.
