Understanding US stock market volume patterns is key to developing trading habits that will result in greater aggregate profit. The typical volume profile, as depicted above, shows US equity market trading volume throughout a given day. It is roughly shaped like a "U" with volume spikes occurring at both open and at close of market. Notice the volume spikes that occur in roughly 30 minute increments; this corresponds to regular news and/or gov't auction events. Also notice that at 3:45, 3:50, 3:55 there occur volume events that may correspond to MOC imbalance updates. By far the largest news event "blip" occurs at 10:00 which is roughly the time when most important daily news events occur. By using this chart, and trading tools that help uncover volume events like Thindicator's VTR and VTRPlus products, you can improve your aggregate profit profile by either avoiding such events or by taking advantage of price movements as the direct result of those events.
Have a great trading day !
Thindicator Support
