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Confused

Megatron said: "Greetings, I'm confused about some concepts in the stock market, I just started, and was trying to focus on a few areas that interest me, but am not sure how to use them to my advantage. 1. The advancing and declining stocks on all four Dow Jones averages (Indus, Util, Trans and Composite). Let's say 10 stocks advanced and 20 declined on the Indus for today, does that have any real value, like can I get a trend based on that? 2. Daily Stock Volume on the Industrials, Trans, Util and Composite and even Nasdaq. What do higher volume figures mean and what do lower volume figures mean? Again, is there any trend I can use? 3. Should I bother tracking the half hourly figures for all four Dow Jones Averages or should I only care about the final number at the end of the day? I really appreciate your help on this! Thanks so much!!!"

Rbreb13 said: "I use Indices for spotting the trend of the day. 1. The A/D line can show you somewhat the trend for a particular day. 2. Volume can tell you whether or not the trend is real. Low volume to me means that no trend will be seen, high volume means it could be a strong trend, either up or down. 3. I watch the Indices all day long. SPX, IWM, DOW, SPY and GS. GS isn't an index but it tends to follow or show market direction most of the time. (GS is a little trick I learned from my esteemed colleague JAP.)"

JAP said: "[quote=Megatron]Greetings, I'm confused about some concepts in the stock market, I just started, and was trying to focus on a few areas that interest me, but am not sure how to use them to my advantage. 1. The advancing and declining stocks on all four Dow Jones averages (Indus, Util, Trans and Composite). Let's say 10 stocks advanced and 20 declined on the Indus for today, does that have any real value, like can I get a trend based on that? 2. Daily Stock Volume on the Industrials, Trans, Util and Composite and even Nasdaq. What do higher volume figures mean and what do lower volume figures mean? Again, is there any trend I can use? 3. Should I bother tracking the half hourly figures for all four Dow Jones Averages or should I only care about the final number at the end of the day? I really appreciate your help on this! Thanks so much!!![/quote] 1. IMO... no. 2. Daily volume volatility (big up days followed by big down days) usually indicates weakness. In bull market periods, the volume bars will be steady and mostly green (ex. SPY... April - May 2007) 3. I use my 15 minute chart to determine entry and exit points. But, I'm mostly a day trader. If you are a long term investor, you should be focusing on your daily and weekly charts."

SporeMonger said: "[QUOTE=Megatron] 3. Should I bother tracking the half hourly figures for all four Dow Jones Averages or should I only care about the final number at the end of the day?[/QUOTE] Why are you concerned about tracking averages daily? You're not trying to trade indices are you? That could be a serious mistake, depending on what vehicle you use. Use funds for buy-and-hold. Use ETFs to trade indices. If you have a strategy to trade the DOW, stick to it. What exactly is your strategy?"

LongArm said: "[QUOTE=Megatron] 1. The advancing and declining stocks on all four Dow Jones averages (Indus, Util, Trans and Composite). Let's say 10 stocks advanced and 20 declined on the Indus for today, does that have any real value, like can I get a trend based on that? 2. Daily Stock Volume on the Industrials, Trans, Util and Composite and even Nasdaq. What do higher volume figures mean and what do lower volume figures mean? Again, is there any trend I can use? 3. Should I bother tracking the half hourly figures for all four Dow Jones Averages or should I only care about the final number at the end of the day? [/QUOTE] 1. The A/D line is best used for spotting divergences, IMO. For example, if the DOW or S&P 500 has been meandering upward recently, but the A/D line has shown more decliners than advancers of late, that's often a sign that the uptrend is weak and about to change direction. But if you're going to use the A/D line, it's much better to use the NYSE's (or one of the other exchanges) rather than the DOW's. 2. More volume adds credibility to either upward moves or downward moves, as the others said. Moves on low volume, don't mean as much, generally. 3. Depends on what your own trading timeframe is. [quote=SporeMonger]Why are you concerned about tracking averages daily? You're not trying to trade indices are you?[/quote] Even if he's not, I think it's always important to know what the indices are doing. A rising tide lifts all boats, as they say."