Registered User
Joined: 5/3/2011
Posts: 7
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Is there a definition or formula that explains how Volume Buzz is derived. My intent it to find stocks that are trading abnormally according to their volume and this indicator seems useful, but I would like to undertand its inner workings.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Volume Buzz is based on the 100-Period Simple Moving Average of Volume over the previous 100 days (so not including today).
The current Volume is compared to a percentage of the average volume which is directly proportional to the percentage of the trading day which has already passed. So at 10:15 AM ET, the current volume would be compared to about 11.54% of the 100-Day Simple Moving Average of Volume ending yesterday. If the result is +25%, it would mean that current Volume is about 14.42% of the average volume instead of 11.54% of the average volume.
So at the end of the day, you could approximate Volume Buzz using a formula like:
100 * (V / AVGV100.1 - 1)
This formula would also have the same or a similar order to Volume Buzz over the course of the day even though the values would not match.
Volume Buzz can be used as a WatchList Column and sort, but cannot be used as an EasyScan Condition.
-Bruce
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Registered User
Joined: 5/3/2011
Posts: 7
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If I wanted to create a scan condition...is it possible to include time values in a formula to pro-rate volume comparison for the day?
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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No, it is not.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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