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Hi Eugene:
I don't believe there's anyway of knowing if the number of people
trading an issue is increasing, unless news came out. It isn't that
unusual for someone to machine gun 10 or 20 100 share lots to try to
get a movement going in a particular direction like breaking support
or a resistance line.
You could just as well see the increase or decrease in volume by
comparing 1,5 or 10 minute price bars with the volume bars. You could
watch the speed of trades on a time and sales chart. You could easily
see those machine gun 100 share lots appear at crucial points on the
price chart.
One helpful way would be counting the number of trades,(not
shares),going off at the bid and at the ask to determine future
direction. Or just the total trades listed as a volatility indicator.
Even better would be having those options for different time bars.
But in the end, trading just a few liquid stocks and contiunually
watching their time and sales is the best way to know their
characteristics.
JMO,
Dominick
>
> Basis for index:
>
> 1. The number of people trading a particular instrument is pretty much
> the same.
> 2. when the prospect of a move is due more people trade the instrument.
> 3. Increased people causes increased price movement.
> 4. Comparing the speed of the movement would give an indication of the
> number of people trading the instrument. speed of movement would be
> calculated by dividing difference between high/low pivot to its
> current price would give the current velocity of movment
> 5. Comparing this velocity to a previous move would give a decent
> basis for estimating the interest in the security and the prospect for
> further increases/declines.
>
> Anyone has any thoughts along these lines or tried something similar?
>
> Thanks
>
> Eugene
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