To be successful in trading in the stock market one should be very careful about operator intent. because the operator in stock market has the power to moves the stock up and down.
The retail investor only relies on the indicator and price action and if we get to know the operator intent the probability of success ratio of trading is increased.
Who is an operator in Stock Market?
The operator in stock market is generally called the big institution like fii or dii etc. They are called operators because they have a huge amount of capital they have the power to move the stock up or down.
What is Volume in Stock Market ?
The volume is defined as the total no. of shares traded for a particular given period of time.
Above is the reliance daily chart. Now look at the bottom of the chart the green and red bar indicate the volume. The red and green bar indicates the total no. volume traded for a particular day.
Now it may be buys or sell but if the volume is red means the large no. of shares is traded as a sell. Similarly, if the volume is green means a large no. of shares are traded in buy.
How to get the operator’s intent?
Look at the volume of a particular day. suppose if the stock is traded in huge quantity and the candle is green and the volume is green but low in quantity there might be chances that the no. of position in share not enough to move up the stock on a particular day the more intraday trade is happening i.e buy or sell on the same day. A large amount of volume is only for the intraday purpose.
Suppose if the company the is going to give the good result the operator in stock market is first one to know about this and they start making position on that.
They start to accumulate the share. The best way to find their move is volume indication the volume is might be unusual from the previous day .
This is laxmi organic daily chart . The company fundamental is good . Now look at the chart and observe the volume the operator in stock market has accumulated the stock for a long period .
The green candle volume is always greater than the red candle volume which is a big sign that operator in stock market is accumulating their position and they are expecting a good performance from the company quarter result.
If you observe the chart the price is slightly moving up for long period with an increase in volume. Now if you observe the chart the big arrow indicates the huge volume on that day .
I have remember a quarterly result is announced the result is outstanding and the stock has moved up with the huge amount of volume and within a 15-day trading session it has given around 70 % return.
Volume and Delivery Analysis
The volume and delivery analysis is one of the great ways to analyze the movement of stock. Suppose if the stock has huge green volume on a particular day that doesn’t mean a stock is great to buy for the next day there might be a chance that the intraday trade happen in huge amounts.
We can track by the delivery analysis in huge volume if the no. of delivery of more the 50 % that means the operator in stock market is bullish for that stock someone will one take that huge amount delivery only if they intended to move the price up.
Now, look at the hdfc chart the volume is increased and the price is also moving up in the next and upcoming trading session we can confirm this with the delivery analysis. You can check this at https://www.nseindia.com/
Sometimes it becomes difficult to track the movement of the market. The market not moving anywhere it is stuck in range. In this scenario the volume-based analysis is of operator in stock market is very helpful. The FII and DII are the two most operator in stock market
To predict the upcoming market move the one can track the FII and DII movement. Example – are they selling or buying in huge quantities. If both are buying the market might be expected in upmove. If both are selling the market might expect in the down move.
All this movement and FII and DII action will give you some picture of the market to predict the direction of the market.
The stock market has a huge opportunity to earn money but one needs to be very cautious about that. Patience and discipline will generate a huge amount of money.
The operator in stock market is very clever they always try to remove the weak hand or retail investor. One needs to be patience. This patience will come from practice and discipline. There is many moves you will find in the market that is against the general trend to create panic and move the retail investor.
Once you practice the market you can easily find out that move in the stock market and can predict the intent of operator in the stock market. The operator has a huge amount they have the power to move the stock up or down.
The operator concept of the stock market you rarely found at anywhere. This is also a most powerful concept that people missed analyzing the market. The price only moves a big hand. They have the power. Once you know the intent of the operator in the stock market this will help to execute the trade better.
So this is the simple analysis of operators in the stock market. Please comment below for any doubt and query suggestions love to see your thought. Any suggestions or more points to add please comment below. This blog is designed to help new people in the stock market and to understand the market in depth.