Test Your Knowledge, Volume Interpretation

Every investor should have a strong understanding of volume and its role in the stock market. Every stock gives key buy and sell signals which can be found by simply knowing how to interpret volume on stock charts. This quiz will test the basics.

Last week I spoke and wrote on understanding stock charts, and had a quiz on the topic, so this week I can't leave everyone out in the cold right? So, here are some questions for you to test your skills on. Write down your answers or recall them in your mind (whichever works better for you), and I will give the correct answers out over the weekend. (Answers now available).

Extra Help - Posts to possibly review before taking this quiz include Volume Interpretation with Stock Charts, Volume and its Meaning, Understanding Accumulation Days, and Distribution Days Explained.

Note: As usual questions will get tougher and require a deeper understanding of the posts above the further you go.

1. With a stock, volume is simply the number of _______ traded in a given day.

2. In a Accumulation day, a stock ends the day _______ (up or down), whereas in a Distribution day, a stock ends the day ________ (up or down).

3.
Interpreting volume is a form fundamental or technical analysis?

4. To be considered a heavy volume day, volume must be greater than what?

5. Stock ABC on Monday traded a total of 150,000 shares and ended the day up, then on Tuesday the stock traded a total of 180,000 shares and ended the day down. The 60 day average daily volume is 200,000 shares. What is Tuesday considered?

  • A. accumulation day
  • B. distribution day
  • C. heavy accumulation day
  • D. heavy distribution day
  • E. none of the above

6. Stock XYZ on Thursday traded a total of 220,000 shares and
ended the day down, then on Friday the stock traded a total of 250,000
shares and ended the day down again. The 60 day average daily volume is
200,000 shares. What is Friday considered?

  • A. accumulation day
  • B. distribution day
  • C. heavy accumulation day
  • D. heavy distribution day
  • E. none of the above

7. Stock JFK on Wednesday traded a total of 250,000 shares and
ended the day down, then on Thursday the stock traded a total of 190,000
shares and ended the day up. The 60 day average daily volume is
200,000 shares. What is Thursday considered?

  • A. accumulation day
  • B. distribution day
  • C. heavy accumulation day
  • D. heavy distribution day
  • E. none of the above

8. Utilize the chart below to answer the following question: What type of volume day is #1 considered (refer back above for options)?

9.
Utilize the chart below to answer the following question: What type of volume day is #2 considered (refer back above for options)?

10. Two of the vowels in this word have been swapped, but which ones? (hint: the actual word is an adjective relating to plants of the milkweed family)

"esclapiadaceous"

If you can get all of these right you should be proud of yourself. If you get all of them right and #10 wrong, then you should still be excited anyway because let's face it, I don't know about you but I sure wasn't a spelling B champion...

View the answers to this quiz.

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