Apologies if this is a stupid question, but my understanding is that the closing price of a stock in any given day is the last price someone was willing to pay. And that's basically how the price is tracked through the day's trading.
Is there any sort of tracking index that normalizes these price fluctuations against trading volume? If normal volume is 10,000 trades per day, then a low-volume day that ends on a low note can penalize a particular stock in the very immediate term for no real reason. On the other side, a high-volume day can make a stock look way better than it actually is. It'd be useful to be able to see data that smooths out some of this noise.
Does such a thing exist, or am I completely misunderstanding something?
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