Read on Twitter
A thread on Delivery Volume – I had always turned a blind eye to the delivery volume and delivery percentage. Of late I have been experimenting with delivery volume and comparing with the overall volume and also delivery percentage. 1/n
I was more interested their behaviour on a longer term and thei r potential to give clues about the market participants, bullishness and bearishness and especially their predictive ability. Sharing my observation here. 2/n
I hope others especially the TA wizards of twitter would share their invaluable insights. The deliverable volumes on a standalone basis may be a better indicator than the overall volume as it indicates longer term commitment 3/n
However, delivery volume is almost proportional to the Overall volume and it may not be a bad idea to continue to use overall volume as collecting the deliverable volume data is a cumbersome activity.’ 4/n
However, it may be a good idea to check the deliverable volume when see very high volumes, BO bars, up Thrust Bars etc. as this may bring out some anomalies which can correct our judgement. For example, see the Bar marked XX in the chart of Gujarat Gas attached 5/n
It is a wide spread Effort to Move up Bar on high Overall Volume. However, a big part of this was intraday volume and deliverable volume was low. Hence it was natural that the effort to move up did not succeed. 6/n
There is a general thought that delivery percentage is a better parameter compared to the Delivery volume. I have noticed that when a up trend start the delivery volume and percentage, both increases. 7/n
But as the trend progresses the stock becomes the focus of day traders and the overall volume increases a lot and the delivery percentage drops though the delivery volume itself is also proportionally increasing. See the enclosed chart of Gujarat Gas. 8/n
Also there seems to no real correlation between the delivery percentage and Volatility as indicated by the chart. Hence, I do doubt that delivery percentage is really a better parameter compared to the delivery volume. 9/n
Summary of my Observation are
-Delivery Volumes provide a better picture. However, the overall volume can be a proxy considering the difficult of data collection
-It pays to look at delivery volume whenever we see very High volumes, VSA conditions, BO bars etc.
10/n
-Delivery Volumes provide a better picture. However, the overall volume can be a proxy considering the difficult of data collection
-It pays to look at delivery volume whenever we see very High volumes, VSA conditions, BO bars etc.
10/n
-Delivery percentage does not provide much value addition and not useful as a longer term predictive / support tool
Pleas share your views on this.
11/11
Pleas share your views on this.
11/11
