Secret Swing Trading Strategy

Forums Ask Me Anything Using TRADED VALUE in NIFTY analysis instead of normal volume

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    • #210850
      Nitin Bhatia
      Keymaster

        While doing analysis of stocks for suppose swing trading, we pay attention to traded value increase or decrease. But while analysing NIFTY which consists of stocks in a wide price range from 60 to 20000, shouldn’t it be better if we analyse the TRADED VALUE OF NIFTY, Because if 1 crore shares are traded in yes bank, and if it moves 5%, then Nifty will practicaly not move but volume will seem to be very high. If the same number of 1 crore shares are traded in say RELIANCE, HDFCs, then a big move will come. At the end of the day, the volume will be the same in both cases but there will be a marked difference in traded value. on 20 September when nifty moved up around 550 points and on 31 October when nifty moved only 33 points, volume was higher on 31st, but the traded value was nearly 40% lower than 20 Sep. So in this case volume is misguiding because on that day, yes bank moved up with huge volume.

      • #285688
        Nitin Bhatia
        Keymaster

          I completely agree. I prefer traded value only as it is the right measure of increase or decrease in money flow.

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