Disclaimer: These are not stock recommendations. I only picked random stocks from the top gainers’ list as of the time of writing this article.
Today, I’d like to share with you the Price-Volume Distribution charts of the following stocks:
- SM Investments Corporation (Code: SM)
- Int’l Container Terminal Services, Inc. (Code: ICT)
- JG Summit Holdings, Inc. (Code: JGS)
- PHINMA Energy Corporation (Code: PHEN)
- Aboitiz Equity Ventures, Inc. (Code: AEV)
I created the Price-Volume Distribution chart a few years ago because I wanted to do data analysis from a different angle. Here are some of the many reasons why I should always have this chart when I engage in short-term trading or long-term investing.
- It helps us identify reversals, divergences, or false breakouts.
- It shows at a glance the prices that got the biggest volume with the highest number of trades.
- It helps us see if the majority of the volume is registered near the intraday high, intraday low, or median. The price bar at the top of the chart represents the intraday high. The price bar at the bottom represents the intraday low.
- It gives us a clue if cross trades happened at a certain price.
- This chart helps us decide where we should place our buying or selling price because we can see the prices that got the biggest volume with the highest number of trades at a glance.
- It helps us know the stock’s Volume Weighted Average Price (VWAP).
SM Investments Corporation (Code: SM)
VWAP: 984.9728
Top 5 Prices (Biggest Trades): 995, 991, 990, 959, 962.5
Top 5 Prices (Biggest Volume): 995, 990, 990.5, 993, 992
Int’l Container Terminal Services, Inc. (Code: ICT)
VWAP: 103.0142
Top 5 Prices (Biggest Trades): 103, 98.8, 104, 102.9, 104.1
Top 5 Prices (Biggest Volume): 104, 103, 102.7, 102.6, 98.8
JG Summit Holdings, Inc. (Code: JGS)
VWAP: 61.9247
Top 5 Prices (Biggest Trades): 60.45, 60.8, 60.25, 62.3, 62.5
Top 5 Prices (Biggest Volume): 63.5, 60.5, 60.45, 62.5, 61.85
PHINMA Energy Corporation (Code: PHEN)
VWAP: 1.4235
Top 5 Prices (Biggest Trades): 1.4, 1.42, 1.39, 1.41, 1.45
Top 5 Prices (Biggest Volume): 1.4, 1.41, 1.39, 1.42, 1.45
Aboitiz Equity Ventures, Inc. (Code: AEV)
VWAP: 60.179
Top 5 Prices (Biggest Trades): 60, 59.95, 59.4, 59.25, 59.25
Top 5 Prices (Biggest Volume): 61, 60, 59.95, 59.35, 59.3
How Can You Use This Information in Your Buying and Selling Decisions?
VWAP – This stands for the Volume Weighted Average Price. It was said that institutional brokers buy at or close to the VWAP so they won’t disrupt the normal volatility of the market. That’s the classical belief. I created my own observations. Below are a few of them.
- If the VWAP is below the current price and the current price is lower than the previous trading day’s closing, the intraday bearishness might continue.
- If the VWAP is below the current price but the current price is higher than the previous trading day’s closing, the intraday bullishness might continue.
- If the VWAP is above the current price but the current price is lower than the previous trading day’s closing, I maintain a neutral sentiment. I see that as an on-going tug-of-war between the bears and the bulls.
- If the VWAP is above the current price and the current price is higher than the previous trading day’s closing, the ball is still in the court of the bulls.
I also have other observations in relation to the mean of the intraday high and low but that’s reserved for the subscribers of EquiPicks. That’s documented in our Quick Start Guide already.
For the Top 5 Prices with the Highest Number of Trades and the Top 5 Prices with the Biggest Volume, please read this article below.
Read: How Mastering Buyers’ Psychology Has Made Me a Profitable Trader
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