Introduction
Welcome to Trending Volume on Stolo! This analysis introduces volume analysis and its significance in trading, focusing on actively traded options strikes. Understand market liquidity and potential price movements with this feature.
Basic terms
- Volume: The total number of option contracts traded during a specific period, indicating liquidity and potential market activity.
- Sentiment: Assessment of market sentiment based on price and volume changes.
Why to use it?
Trending Volume helps traders assess market liquidity, identify potential trend changes, and make informed decisions during intraday trading. Understanding volume dynamics is crucial for predicting price movements and executing profitable trades.
Navigation
Analysis-> Instrument Overview-> Options -> Trending Volume
How to use it?
- Select the desired underlying index or stock and select active strikes (+/- 10 from ATM)
- Analyze the time, last traded price, day high/low break, changes in put/call option volume, and market sentiment to gauge potential trading opportunities.
- How to understand sentiment is given in the table below:
| Price | Volume | Sentiment |
| Increase | Increase | Market is bullish |
| Decrease | Decrease | Bearish market could end, reversal can be expected |
| Decrease | Increase | Market is bearish |
| Increase | Decrease | The bearish market could end, reversal can be expected |
Support
For further support and understanding join our trading community group-> Telegram Link
Disclaimer
The videos and content on this platform are purely for educational purposes to showcase the Stolo product and help people understand how the product works. We will not be responsible for your profit and loss. Please consult with your investment advisor before making any financial decisions.