How and Why Do I Do Trade-Volume Analysis
Trade and volume analysis helps me determine optimal price levels for buying and selling securities. At Equilyst Analytics, I use a specific approach known as Dominant Range analysis, which focuses on two key aspects: trades and volume.
When conducting trade and volume analysis, I assess the position of the volume-weighted average price (VWAP) in relation to the current price. Additionally, I consider the position of the dominant range relative to the intraday high and low.
The dominant range refers to the price range characterized by the highest trading volume and the greatest number of trades. By examining the proximity of the dominant range to the intraday high and low, I gain insights into the interest of participating traders and investors in pushing the price higher.
To gauge the level of optimism among participants regarding buying the stock at a higher price, I analyze whether the current price exceeds the VWAP or if the VWAP falls within the dominant range, particularly closer to the intraday high than the intraday low.
Achieving a sense of balance or equilibrium between the number of trades and volume at each price level is essential. This equilibrium is evaluated in relation to the individual distribution of trades and volume within each group.
The culmination of this analysis is the development of my proprietary Dominant Range Index, which encapsulates the statuses of the elements I have encoded. By leveraging my algorithm’s processing capabilities, the Dominant Range Index can yield a bullish or bearish rating.
As the fifth component of my 6-indicator Evergreen Strategy When Trading and Investing in the Philippine Stock Market, the Dominant Range Index applies the Nash Equilibrium effect, a theory that holds considerable value in my capacity as a computer scientist and professional stock market analyst.
While the technical description of this functionality may seem intricate, I have simplified it by assigning an overall bullish or bearish rating to the Dominant Range analysis. A bullish rating implies an upward price movement is likely, while a bearish rating indicates the opposite.
In this complimentary report, I am pleased to share the Dominant Range Index for the following stocks, along with the respective date and time stamps displayed on their charts.
These are the 10 top-traded stocks as of closing on June 29, 2023.
BDO Unibank (BDO)
Dominant Range Index: BEARISH
Last Price: 138.9
VWAP: 139.36
Dominant Range: 138.3 – 138.9
Int’l Container Terminal Services (ICT)
Dominant Range Index: BEARISH
Last Price: 200.2
VWAP: 202.55
Dominant Range: 200.2 – 204
Bank of the Philippine Islands (BPI)
Dominant Range Index: BULLISH
Last Price: 110
VWAP: 109.88
Dominant Range: 110 – 110
Metropolitan Bank and Trust Company (MBT)
Dominant Range Index: BULLISH
Last Price: 56.2
VWAP: 55.77
Dominant Range: 55.95 – 56.2
Ayala Land (ALI)
Dominant Range Index: BULLISH
Last Price: 25.1
VWAP: 25.28
Dominant Range: 25.3 – 25.3
Ayala Corporation (AC)
Dominant Range Index: BULLISH
Last Price: 640
VWAP: 642.82
Dominant Range: 640 – 643.5
PLDT (TEL)
Dominant Range Index: BEARISH
Last Price: 1305
VWAP: 1,308.25
Dominant Range: 1305 – 1305
Robinsons Retail Holdings (RRHI)
Dominant Range Index: BULLISH
Last Price: 54.4
VWAP: 54.21
Dominant Range: 54.4 – 54.5
SM Prime Holdings (SMPH)
Dominant Range Index: BULLISH
Last Price: 33.8
VWAP: 33.86
Dominant Range: 33.8 – 33.9
SM Investments Corporation (SM)
Dominant Range Index: BULLISH
Last Price: 916
VWAP: 921.91
Dominant Range: 920 – 928
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