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Anyway, although I do monitor MP charts periodically, I find that monitoring intraday volume also works well. Specifically, I use a method I read about in Brett Steenbarger's blog "Traderfeed". What he (Brett) suggested was to lookback 20 days, averaging intraday volume on a 15 minute basis. What you would do is to compare what you see to this 20 day average to determine whether institutions are playing that day or standing on the sidelines. Here is a link for those interested
http://traderfeed.blogspot.com/2007/...ck-market.html
For what its worth, I lookback 20 days and break out the average volume in five (5) minute increments. |
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That's a good suggestion. In fact, I wrote an indicator to do just that. Check out the chart below. The yellow dot by each volume bar indicates the average volume for that 5-min time period looking back 20 days.
AvgVolume.GIF
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As regards today's move, I believe it took place on slightly low volume (daily basis) so I am suspect that institutions are selling it, and/or using the opportunity to modify positions. For instance, I took profits on several existing positions for tax reasons. |
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That's a good point Steve. Thanks for sharing.