InvestorQ : Can I take trading activity as an indicator of market bias?
Angel dcosta made post

Can I take trading activity as an indicator of market bias?

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Archita Jajjoo answered.
3 years ago
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This is a very important role that trades play in the markets. During the day there are a number of triggers. There could be the Fed minutes, the RBI policy, quarterly results coming out, companies facing debt repayment problems, promotes pledging shares and even announcements pertaining to corporate actions. It is impossible for an investor to sit and evaluate these factors on an individual basis. Most long-term investors are not exactly keen on the shorter term trends. By trading in and out of the markets on the basis of news flows and market flows, the traders are instrumental in disseminating intelligence about a stock. This becomes a very critical input point for the other traders and investors in the market.
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