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Net Buy Volume Trading Strategy

By Johns Wu on May 15, 2006

I learned this trick from "darrelldemello" from the Yahoo message boards. Basically, it seems that ADVFN has a nice system in place which allows you to see the number of shares bought at the ask and the number of shares sold at the ask.

If you can find strong divergences in the net volume and price, it can usually hint at pro-traders accumulating stock. For instance, if on one day 5mil shares are bought at the ask and 3mil shares are sold at the bid, the NBV (net buy volume) is 2mil shares. Naturally, since the NBV is positive, you would expect to see the stock trending up on that day. However, if you see the stock trending down or flat-lining on that day, then you have just spotted a valuable divergence.

This kind of divergence usually occurs when professional traders (who want to accumulate a stock) hammer the bid with sell orders whenever the stock tries to run up. Then, they place buy orders to catch all the shares that nervous retail traders are selling. It never hurts to buy the same stocks as the pros!

To try this system yourself, sign up for a free account at ADVFN. Then log in and click on the "Trades" tab and type in the stock of your interest.  You will then be able to see the buy/sell volume. ADVFN is the only service I know of that has this kind of info.

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This entry was posted on Monday, May 15th, 2006 at 1:11 am and is filed under Investing Tutorials, Most Popular. You can skip to the end and leave a response. Pinging is currently not allowed.


10 Responses to “Net Buy Volume Trading Strategy”


By Pete on February 2nd, 2006 at 4:48 am

Thanks for the tip!

By Dan on February 2nd, 2006 at 7:10 am

i realy dont like them! they spam my email and they dont deliver what theyve promissed.

By Lynda on February 4th, 2006 at 1:25 pm

this is great info. I have a paid account with ADVFN for the total view they offer. Didn’t even know this was on there! Thanks!

By kevinster on May 15th, 2006 at 2:44 am

..not bad, makes sense too. lemme give that a try.

By Darrell DeMello on May 15th, 2006 at 1:27 pm

Hi John,
I must say That I learnt about the value of NBV /NSV as a predictor of events/news in the near term –> intermediate term from the sensei: TEADOWNER …
Cannot be more grateful to him for all that he has shared and taught many of us …
Have a great day!
DD

By marc9786 on July 1st, 2008 at 10:25 am

Have a subscription to easystockalerts.com and the get the latest news that interest you before it hits yahoo and makes a coming on the web. This would be a good way to make money without the worries of the stock news…so sigh up at easystockalerts.com and make things happen.

By LAW on December 18th, 2008 at 11:15 am

Could Market Makers be abnormally trading Flowserve Corp (FLS). Example: On 12/17/08…645,427 buy volume, 38.75%, 618,629 sell volume, 37.14%, that shows FLS with 26,798 greater shares of buying than selling (NetVol) and the stock price was down –$2.24. That seems to suggest Market Makers were trading the stock in a way inconsistent with the normal supply and demand (economics 101); more buying than selling should cause prices to rise.

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By tip on May 20th, 2009 at 6:00 am

I really, truly am glad I found this site. It has answered so many questions for me. I will be back. Thank You

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