Price By Volume Chart - PBV
Categories: Trading
You just bought some shares of your fave company, Googappleface. They seem to know what they’re doing. But...do you?
You can check out Googappleface’s price by volume chart (PBV chart) to find out. The PBV chart is a histogram. That’s a type of bar chart, with each bar showing a range. We’ve got price level on the y-axis, and time on the x-axis. From there, you can see the different prices people bought shares for at different times. That means that you can see if you got your shares when they were priced lower compared to when everybody else bought theirs, or if you were a short-term sucker that bought them at their most expensive price.
Why only a “short-term” sucker? Because PBV charts are over time. If the share price rises over more time, then you won’t be looking like such a sucker anymore.
Besides judging yourself, you can use PBV charts to get a sense of the support or the lack of it for a security. If the security gets bought at higher and higher prices, it’s a bull market for that one. If it’s bought at higher prices, and then lower, and then higher, that shows some resistance.
Now go and make yourself a PB&J and check out a PBV.
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finance a la shmoop what is training volume training volume with a lot of
volume and this is trading with okay yeah yeah you get the idea [Man shouting into megaphone]
volume here is not about number 11 on the dial but rather about the number of [Person turning up volume dial]
shares trading back and forth on a given day week hour a month and generally
speaking higher levels of volume are a relatively bullish sign for the market [Water pouring]
on all else being equal that is optimistic investors are putting money
into the system buying up stocks and contributing liquidity like they are [Investor money transfer to stock market]
seeking risk they're hopeful they're optimistic lots of volume high liquidity
low volume low liquidity and high is good
Inessa not just a california proposition 64 thing high volumes are attractive to [People protesting for cannabis]
large institutional professional traders and investors because there remains the
perception that if they want to sell a given position well then with high
volumes they can get out quickly so they feel less hesitation about getting in
quickly okay good just checking [Man shouting into megaphone]