Price/Volume Stock Screener
The Price Volume Action Screener uses market data such as price and volume to analyse the stock market comprehensively. This powerful screener can help you identify stocks showing strong buying momentum and reduce your risk of investing in stocks unlikely to generate profits. With the Price Volume Action Screener, you can quickly and easily find winning stocks for your portfolio.
It provides an efficient way to analyse the price and volume of stocks in the market to identify which ones have the most potential. With this tool, you can quickly narrow down the list of stocks and make informed decisions on which ones are worth investing in. Whether a beginner or an experienced investor, the Price Volume Action Screener is a great resource in your arsenal.
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What Is a Volume Price Screener?
The price volume action screener identifies stocks with increasing or decreasing price momentum and volume. It helps to determine the buying or selling pressure in the market and the overall trend of a particular stock. The screener can help investors identify potential trading opportunities and provide valuable insights into the stock's price movement.
The price volume action screener depends on the price volume trend, a technical analysis tool that measures the trend's strength based on price and volume data. The volume stock screener is a simple but powerful indicator to analyse the stock market.
How Do You Calculate The Price Volume Trend?
You can calculate the price volume trend (PVT) by multiplying the percentage change in price by the volume and adding the result to the previous day's PVT. The formula for calculating the PVT is as follows.
PVT = [((Current Close - Previous Close) / Previous Close) x Volume] + Previous PVT
Where:
Current Close - The closing price of the current trading day
Previous Close - The closing price of the previous trading day
Volume - The volume of shares traded on the current trading day
Previous PVT - The PVT of the previous trading day
The PVT is a cumulative indicator reflecting the market's buying and selling pressure. If the PVT increases, it indicates intense buying pressure in the market, and if the PVT decreases, it means intense selling pressure.
How To Interpret The Price Volume Trend?
Depending on the trader's preference and strategy, you can interpret the price volume trend in several ways. Here are a few ways to interpret the PVT.
1. Trend Confirmation: If the PVT increases with the price, it confirms the uptrend. Conversely, if the PVT decreases with the price, it confirms the downtrend.
2. Divergence: If the PVT increases, but the price decreases, it indicates a bullish divergence, suggesting the stock may be undervalued and be a good buying opportunity. Conversely, if the PVT decreases but the price increases. In that case, it indicates a bearish divergence, suggesting the overvalued stock.
3. Volume Analysis: If the PVT increases with the volume, it indicates intense buying pressure in the market, which could be an excellent opportunity to buy. Conversely, if the PVT decreases with the volume, it indicates intense selling pressure in the market, which could be an excellent opportunity to sell.
The price volume strategy involves analysing the price and volume charts of a particular stock or market to identify patterns and trends. The aim is to use these patterns to predict future price movements and to enter or exit trades based on these predictions.
You can use several different techniques in the price volume strategy. Some of the most common ones include the following.
● Breakout trading: It identifies key stocks where the price levels struggle to break through. When the stock price finally breaks through this level, traders may see this as a sign that the stock is likely to continue moving in that direction and enter a trade accordingly.
● Trend following: This involves identifying the direction of the movement in the market and entering trades in that direction. Additionally, traders may look for trends in price and volume charts to confirm the direction of the trend.
● Support and resistance trading: This involves identifying critical market support and resistance levels and entering trades when the price approaches these levels. Traders may look for high volume levels to confirm their significance.
● Volume analysis: This involves analysing the volume chart to identify patterns and trends in the trading volume. Traders may look for changes in volume that do not match corresponding price changes, which could indicate a potential price reversal.
Overall, the price volume strategy is versatile, and you can apply it to various trading styles and timeframes. By using the relationship between price and volume to identify patterns and trends, traders can make more informed decisions about when to enter and exit trades, which can help them achieve better market results. However, as with any trading strategy, it is essential to use appropriate risk management techniques to minimise potential losses.
Examples of price volume screener
Let's look at an example of a price volume screener in the Indian stock market using the free screener tool on the National Stock Exchange of India (NSE) website.
The first step is to select the market segment and the exchange. For this example, let’s choose the "Equity" market segment.
Next, we will apply the following filters:
1. PVT has been increasing for the last five days
2. Volume has been increasing for the last five days
3. Price increases for the last five days
These filters will help us identify stocks with intense buying pressure in the market.
After applying the filters, the screener generates a list of stocks that meet the criteria. Then, look at one of the stocks on the list - HDFC Bank.
HDFC Bank is one of the leading private-sector banks in India. The stock has been in an uptrend for the past few months and has shown intense buying pressure.
The PVT chart of HDFC Bank shows that the PVT has been increasing along with the price, indicating intense buying pressure in the market.
The volume chart of HDFC Bank shows that the volume has been growing along with the price, indicating substantial buying pressure in the market.
The price chart of HDFC Bank shows that the stock has been in an uptrend for the past few months and has shown strong price momentum.
Based on the price volume action screener, HDFC Bank is a stock with strong market buying pressure and could be a good opportunity for traders and investors.
Conclusion
The price volume action screener is a powerful tool that can help traders and investors identify potential trading opportunities and provide valuable insights into the stock's price movement. It is based on the concept of price volume trend, a simple but powerful indicator you can use in various ways to analyse the stock market.
In the Indian stock market, the price volume screener can identify stocks with solid buying or selling pressure. By applying suitable filters and analysing the PVT, volume, and price charts, traders and investors can identify potential trading opportunities and make profitable trades.
Overall, the price volume screener is a valuable tool that can help traders and investors make informed decisions and maximise their profits in the stock market.
Frequently Asked Questions
How does the volume affect price action?
Volume provides essential clues about market sentiment, price volatility, and support and resistance levels, which can help traders and investors decide when to buy, sell or hold a stock.
What is the price volume strategy?
The price volume strategy uses the relationship between a stock’s price and volume to identify trading opportunities in the stock market. It is based on the principle that price and volume are interrelated and that one can often lead to changes in the other.
What is volume price analysis?
VPA is a robust trading methodology that can provide valuable insights into market trends and potential reversals. By analysing the relationship between volume and price, traders can identify smart money and use their leadership to make more informed trading decisions. However, as with any trading strategy, it is vital to use appropriate risk management techniques to minimise potential losses.
What is a price action indicator?
Price action indicators do not use traditional technical indicators such as moving averages, oscillators, or trend lines but instead rely on the raw price movement of the traded asset. The goal of price action analysis is to interpret the behaviour of market participants based on the price movement and to identify potential trading opportunities based on the behaviour.
How is price volume calculated?
You can use the price volume chart to calculate the asset’s price volume. Traders and investors typically look for patterns in the data. For example, they may look for instances where the price of an asset has increased while the volume has also increased, which could indicate a strong buying trend. Alternatively, they may look for instances where the price and volume have also decreased, which could mean a weak or bearish trend.