DJI Volume Changes

Dick Lexic

Veteren member
4,954 124

Attachments

  • yahoo mth.jpg
    yahoo mth.jpg
    65.3 KB · Views: 290

Vicorka

Active member
246 7
Hi,

Can anyone advise what happened to the DJI volumes after 25/06/2012?

The reported data shows it going from volume in the "billions", to a day later and hence forth, only "millions"

Here is a table of the data fyi: TR4DER - Dow Jones Industrial Average [^DJI] Historical Prices from 2012-03-01 to 2013-01-01 - Page 1

Makes a bit of difference in the charts.

Cheers
Magyarkuki

Volume was down from 3-4 billions to 2-2.5 B. - not as strong as in your data source. You may think on changing your data provider.

The volume was down mainly because of the holidays - usual yearly event for these days.
 

Mr. Crabs

Established member
598 3
Volume was down from 3-4 billions to 2-2.5 B. - not as strong as in your data source. You may think on changing your data provider.

The volume was down mainly because of the holidays - usual yearly event for these days.

That's an enormous difference, potentially the quiet before the storm, accumulation on quiet volume or thinning to scavengers buying at high prices, I'd bet on the latter in the short-term.
 

Vicorka

Active member
246 7
That's an enormous difference, potentially the quiet before the storm, accumulation on quiet volume or thinning to scavengers buying at high prices, I'd bet on the latter in the short-term.

This is normal drop in volume that occurs every year and it does not mean "quiet before storm". See DJI charts snapshots of December month for each 2006-2012 below:



DJI Low Volume in Dec 2009
DJI Low Volume in Dec 2008
DJI Low Volume in Dec 2007
DJI Low Volume in Dec 2006

I can go back to 1997 and the picture will be the same. Such low volume during holidays means nothing except that many traders are getting drunk.

If you want to spot "Quiet before Storm", you may try Bollinger Bandwidth which measures volatility. Sudden and strong drops in volatility are known as squeezes and they are spotted well by this indicators. Such drops in volatility usually occur before strong movements and that is why such volatility behaviour is called as "Quiet before Storm"
 

Mr. Crabs

Established member
598 3
This is normal drop in volume that occurs every year and it does not mean "quiet before storm". See DJI charts snapshots of December month for each 2006-2012 below:



DJI Low Volume in Dec 2009
DJI Low Volume in Dec 2008
DJI Low Volume in Dec 2007
DJI Low Volume in Dec 2006

I can go back to 1997 and the picture will be the same. Such low volume during holidays means nothing except that many traders are getting drunk.

If you want to spot "Quiet before Storm", you may try Bollinger Bandwidth which measures volatility. Sudden and strong drops in volatility are known as squeezes and they are spotted well by this indicators. Such drops in volatility usually occur before strong movements and that is why such volatility behaviour is called as "Quiet before Storm"

Wow you've proven to be quite the contra, I say low volume is quiet before the storm because it's used to suppress volatility. If sellers were to spark major volume current prices wouldn't be sustained. Think what you may, I tend to keep a more intuitive approach to the markets, I realize not everyone can corroborate my insight.
 

Vicorka

Active member
246 7
Everyone has his own way and I'm not trying to convince you to change the way you analyse. I'm sorry if I made a wrong impression.
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock