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Red and Green Volume Bars
Hello All. I'm pretty new to investing and had a quick question that I couldn't find an answer to. I know that the green volume bars indicate more buying pressure than selling which a red volume bar would indicate. Isn't the buying and selling equal since somebody has to buy a share that someone sells. I was thinking that maybe the volume is green if the price closes higher or red if closed lower. Also what color would the bar be if the stock closed at the opening price. I guess I need someone to explain or point me to a thread/article that explains the color of the volume bar. Is it possible to have a green volume bar on a day when the stock price fell say 1%.
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red means that the stock was lower at the end of the time period that the volume bar covers and green means it was higher. The colors will change when you change your time setting on the chart .. ie 5m vs 30m chart
if it closes at the same price it will be gray ... at least it is on amtd
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That would make sense if I understand what orange is saying correctly. MM, market maker (or middle man, lol) would account for a buy for every sell or a sell for every buy. But since your not dealing with just two parties but three, the buyer, MM, and seller, then the buyer/seller ratio is not always going to be even steven because the buyer's purchase from the MM is not always gonna match what the seller sold to the MM. The MM sometimes ends up holding some of the shares that he aquired.
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Lol, yeah I was gonna mention that flip side of it at the end that they many times they would also end up with a share deficiency, but I figured we had the idea. Point being, I was elaborating on your illustraton that the shares bought or sold aren't always an even share for share between buyers and sellers with the MM in the picture.
Good point about the short selling, manufacturing shares to sell out "thin air". Good way to put it, lol. And you're right, those MM's would have hell to pay if they were all of a sudden audited. Valuable insight into those "nice" guys like NITE as you described
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This is indeed a very informative thread. Thank you! However, it still leaves me with one other question. I own shares of a penny stock. When I call my broker with a market order to sell, until there is a buyer, nothing happens; and this can take days! So if there is a Market Maker, why can't a sale take place immediately?
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