Volume Buying Deepverge

Thursday, 13th January 2022 09:59 - by Moosh

Aside from my core holding of Deepverge (DVRG), I wanted to try a scaled up test trade. Following the news driven breakout in October 2021, I chose my starting point for volume calculation as the August 2021 price peak and arrived at 1,592 shares (£412.44, break even 26.47p) bought on 26 October 2021. These were sold on 28 October 2021 for 9.3% profit.

This was a surprisingly quick trade, a solid return on a small value risked. Once again it was the market which dictated how much to buy initially and I controlled the starting point for volume calculation and the scaling up size.

- Catch up with Moosh's previous blog posts here

- Deepverge April 2021 article

- Deepverge - Part 2

- Deepverge Part 3

The October-November 2021 trend for DVRG was interesting to follow, with days when both volume and trades exceeded their v20* and t20**, respectively, coming on:

October 19, 21, 22, 28

November 3, 10

If you do not currently monitor v20 and t20 then I would encourage you to start looking into it as they will help you to confirm when and why prices are moving or not moving, from a technical point of view. It’s better to be a few steps ahead of those who don’t know about this relationship, which is most investors.

Above: DVRG three month chart

*v20 is 20 day average volume
**t20 is 20 day average trades

Reference

Pump Up the Volume – 20 December 2021 blog entry

Trend identification – 22 December 2021 blog entry

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.