A question about the actions of Large Players

[grems8544]

The actual method could be improved by shortening the analysis time interval and by using tick data instead of the Larry Williams formula to count shares within one time interval.

I think this is the key in the next evolution of EV.

Ellis' comments notwithstanding, I've noticed many trades which are large-block trades do not budge the TEV lines, or do so disproportionately. We certainly could argue (successfully) that over that 1 minute period that the equilibrium of the buyers and sellers did not change, but when I step back and look at a large block transacting, *something* is going on with the stock, yet TEV will not reflect the massive buying or selling. As an example of this I provide GRT's action on Friday:



Here, we see that over 3M shares transacted in a single minute, yet LEV/TEV did not budge. Due to scaling you cannot see the volume action after this -- there were numerous smaller blocks transacting (2K-10K size), which moved LEV/TEV around. Certainly, the 3M transaction did not upset the equilibrium, but when I step back and look at the stock as a whole, the 3M represents a $30M transaction by *somebody*, and I would want to know which way this moving (a buy or a sell).

Another example is when a large purchase barely moves TEV, but smaller volume moves TEV a considerable amount. As an example of this is COMV on 5/23:



Here, we see that early in the trading day, a considerable amount of a volume transaction occurs (bottom trace, red), and LEV (blue) and TEV (yellow) (middle traces) are barely moving. Later in the day, we have significant movement in LEV and TEV, yet the relative volume levels are much lower.

I think that in both these examples that volume vs. TICK information would be more indicative of the bigger picture for the stock, not just the equilibrium change.

My three cents (inflation) ....

pgd