A Way To Avoid Shark Infested Waters In The Stock Market
For the past year or so we've become frustrated by sudden unexplainable price swings in the stock market. These price swings have been sometimes attributed to "fat finger" events (unintended computer driven trades). Other times they have been attributed to high-frequency and dark-pool-trading.
Well.. we think we've come across a way to identify those stocks that are experiencing these adverse activities thanks to some relatively new capabilities offered by the TradeStation platform (just a hat-tip, nothing more).
We've created what we're calling our Price-to-Net Volume Correlation Indicator. We've posted the results for over 3,000 names, with an easy way of looking up a stock you may be holding or are considering for investment. Additionally we use a simple green, yellow, and red visual recommendation approach.
We will update the page monthly or more frequently if there is interest, so any feedback would be greatly appreciated. Thanks in advance.