In the 13th episode of the Learn2Trade series, our expert, Mr. Vivek Bajaj will discuss the key aspects of trading—Volume indicator, Delivery indicator, and Open Interest (VWAP) indicator

These are the components that are pretty significant in understanding market dynamics. By using these indicators, traders can understand how the operators work in the stock market. The stock market operators control stock prices in the stock market. As a trader, you need to recognize the stock operator's tricks to participate in the stock. The goal is to understand the operator's goal, identified through these three key components and price action. 

What You Will Learn:

In this video, Vivek Bajaj will discuss about the significant process of tracking stock market operators. By analyzing volume patterns, delivery data, and open interest metrics, you can understand operators' intentions in the stock market and can make informed decisions.

Mr. Bajaj explains that volume in the stock market represents the amount traded at a particular price point, whether it is intraday or overnight. Understanding the mechanism of volume is like looking into the heart of the market. But why is volume crucial? These stock market operators, or big players in the market, leave footprints in the form of volume spikes. Mr. Bajaj adds that traders can gain insights into their intentions by tracking volume alongside price action. 

The overnight positions that stock market operators or investors hold are called deliveries. Mr. Bajaj states that delivery data is not readily available on platforms like TradingView, tools like StockEdge offer profitable insights into this aspect. By monitoring delivery data, he adds traders can identify the idea behind market moves. Predicting the trend by analyzing delivery volume, especially during the breakouts is quite possible. On a day when delivery quantity outweighs the traded volume greatly, it indicates strong interest from market participants. Analyzing these key levels on your charts can serve as strategic reference points in your trading journey. 

Frequently Asked Questions (FAQs)

Q1. Who are operators in stock market?

They are traders, investors, or participants in the stock market who trade with the intention of manipulating the stock price by increasing stock volume. The stock prices keep rising when they raise the volume of stocks traded in the stock market by trading in a circle and raising the stock price.

Q2. What are the different types of operators in stock exchange?

In the stock exchange, various stock operators influence market dynamics. Institutional investors like mutual and hedge funds deploy substantial capital. Market makers, large financial institutions, and corporate insiders impact stock prices. Illicit operators engage in schemes like "pump and dump." To make informed decisions, traders need to know how to distinguish the positive ones from the manipulative ones.

Q3. How do you analyze the volume?

The volume shows how much is exchanged at various price points. Assessing the operator's intent is made easier by analyzing volume along with price movements. Selling pressure is indicated by red candles with growing red volume, while buying pressure is shown by green candles with increasing green volume.

Q4. What is the concept of delivery volume?

Delivery volume can be derived by deducting the intraday volume from the total volume. The main difference between traded volume and delivery volume is that traded volume is the total number of shares traded in a day, and delivery volume is the intraday volume minus the total volume.

Q5. How does VWAP help in identifying support/resistance zones and operator activity?

VWAP is the average price considering the volume of trades. Tracking VWAP levels helps identify potential demand or supply zones where significant trading activity has occurred. By using VWAP, you can draw lines on charts at significant price points where delivery data suggests the operator's activity. These levels act as potential support or resistance zones, helping in decision-making.

Q6. How does analyzing volume, delivery, and price action enhance understanding of market dynamics and operator psychology?

Analyzing Volume-Delivery Data is a crucial aspect of understanding market dynamics and gaining insights into operator psychology in the stock market. By combining volume and delivery parameters with price action, you can make more informed decisions, identify trends, and understand the underlying dynamics of the market.

Q7. What is open interest?

Open interest defines the total number of open or outstanding contracts presently held by the market participant at a given time. Open Interest analysis helps identify stock market trends.

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