Chart of the Day: Volume

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This is a chart of NYSE Total Volume with 1 week (red) and 1 month (blue) moving averages applied. There is a seasonal pattern to volume, volatility and trading activity, which all tend to decline into summertime, but recent levels are historically low. Note that the previous times the 1 week average has declined to current levels has been end of year holiday periods. In other words, if the market feels really dead right now, there’s a reason—it is.



Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.