Purpose:
The Volume pane displays the trading volume for each candle on a price chart, providing traders with insights into the intensity of trading activity. Volume is a crucial metric for understanding market sentiment, as it reflects the number of shares or contracts traded during a given period.
Key Components:
- Broker-Provided Data:
The volume data displayed in the Volume indicator is provided directly by the broker’s API connected to Option Stalker Pro (OSP). This data is sourced from the broker’s feed, and each broker processes their data differently, which can lead to variations in volume readings across different trading platforms. It’s important to note that volume discrepancies are common due to these differences in data processing. - Intrinio Connection:
When signed into OSP using the Intrinio connection, the volume data is sourced from Intrinio, which distributes transaction data from the IEX Exchange. This exchange represents approximately 10% of the Total Consolidated Tape, meaning that the volume data displayed will reflect about 10% of total market transactions. This limited scope is important to consider when analyzing volume on the chart, as it may not represent the full picture of market activity.
Summary:
The Volume pane in Option Stalker Pro provides essential information about trading activity by displaying the volume of shares or contracts traded during each candle. This data is sourced directly from the broker connected to OSP, and differences in volume readings across platforms can occur due to variations in how brokers process data. When using the Intrinio connection, the volume data reflects transactions from the IEX Exchange, which represents approximately 10% of total market activity. Traders should keep these factors in mind when interpreting volume data on their charts.
