How to determine a buyers or sellers market on a day? - Aussie Stock Forums

# Thread: How to determine a buyers or sellers market on a day?

1. ## How to determine a buyers or sellers market on a day?

I find it harder to make out by looking at total volumes traded and the last price of the shares (because, volumes sold = volumes bought). Is there a method to follow or a formula to apply?
Thanks

2. ## Re: How to determine a buyers or sellers market on a day?

Originally Posted by thanam
I find it harder to make out by looking at total volumes traded and the last price of the shares (because, volumes sold = volumes bought). Is there a method to follow or a formula to apply?
Thanks
If the price is going up, there is more demand then supply. and visa versa. there isnt anything else that shows you this.

3. ## Re: How to determine a buyers or sellers market on a day?

Originally Posted by Naked shorts
If the price is going up, there is more demand then supply.
understand yr point NS ----- but 'time' can alter that position relative to price depending on the instrument being traded ----

ie.

1) not if its short covering

2) not if the deep pockets arent involved

4. ## Re: How to determine a buyers or sellers market on a day?

simple answer ................

watch the action ...often a stock is propped or "scared" into where the buyers/sellers want it and reading the games can only be done by watching it trade by trade

5. ## Re: How to determine a buyers or sellers market on a day?

http://www.aussiestockforums.com/for...ad.php?t=14011

Learning how to read a chart is the best in my view.

6. ## Re: How to determine a buyers or sellers market on a day?

thanam,

Totally agree with naked short. If the price is up that is a buyer's market. This is the only way.

7. ## Re: How to determine a buyers or sellers market on a day?

Sunday 25 January 2009

thanam:

tech/a's reference would be a good read for you to
begin understanding the reationship between price
and volume. It is a complex one, and an art form,
not one reduced to mechanics, or a fixed method.

A similar bar and volume can have significant difference
in a market that is trending in one direction when at one
area of the trend v a different area of the same trend.
As well, a similar bar and volume can have one meaning
in one trend, and a different meaning when the trend
is in the opposite direction.

A small range bar with average volume could have no
meaning, at one place, a resting spell, for example,
yet have a significant meaning near a top or bottom.

Plus, a sinble bar and volume has more significance
when it can be seen to reflect a pattern of the
developing market activity.

Reading price/volume behavior is a sophisticated endeavor,
and to reduce it to a simple observation would be very
misleading.

Best answer? No easy one.

Cheers!

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