VTO is "volume turnover". This is the amount of shares that is traded within, in my case, one month. This amount is expressed in terms of the total amount of shares outstanding for the stock. The greater the VTO, the more responsive it will be to breakouts and fundamental events, and the more volitile it will be during the normal course of trading.
TRIN is the ARMS index. ARMS indicators measure the relative strength of the volume of advancing issues to declining issues. It is calculated by dividing the ratio of the number of advancing issues to the number of declining issues by the ratio of the volume of advancing issues to the volume of declining issues. If volume in advancing stocks exceeds that of volume in declining stocks, the ARMS index generates a reading of below 1.00. Conversely, if declining stocks receive more volume than advancers than the reading generated will exceed 1.00.
Well, as far as tape reading goes, probably the first thinng to learn is how to identify intraday price S&R levels. Intraday S&R levels also can impact the following day's price action. One way to do this by looking at how the price moves and then changes direction by "bouncing" off of a high or low value that it has attained. Experience will allow you to descriminate between a significant reversal of movement and a normal and comparatively meaningless fluctuation in the price of the stock. This will be validated when the price retests its high or low value that it moved away from. You should see evidence of resistance to movement. This can be where the price "rides" that point of resistance before breaking through or moving back away from it. Also, if the price moves directly toward it and breaks through, the velocity of the price move can increase along with the aggregate volume on reported prints (quotes) of the stock during that point in time. Also, if the resistance is significant, you also can look for larger blocks trading during the price move after the point of resistance. If this happens, expect the price movement to continue for some extent.
However, tape reading is like determining a direction of a wandering dog tied to a retractible leash. At most you can be only one half of a step infront of the dog. At other times, you are a half of a step behind. And then there are times where you just have to wait and see what the dog will be inspired to do next. Still, there are many techniques that can be used to help determine the extent of an intraday price move and perhaps evaluate the liklihood of continuation or reversal. But this is much more art than a science. Experience is the only way to learn this technique of following stock.
By the way, I have never been showed how to read tape and never have read a book on it. So I am relating to you what I have learned by myself which appears to work for me.
On another subject, it looks like PSFT may be "out of the woods", market gods willing. ;)
Bob Graham |
