Intraday Intensity Index

Technical analysis involves looking at the trading activity of a security (like a stock) and using that information to predict what's likely to happen next. Price movement represents the main focus. However, other details play into the equation as well.

The Intraday Intensity Index takes into account one of those other influences. It looks at a security's price movement...but also tracks the level of trading volume.

The "intensity" part of the index has to do with the amount of involvement in any particular move, as judged by the number of shares changing hands. That's what volume tracks: the amount of trading that is taking place, as measured by the number of shares being moved around at a given time.

Intraday Intensity Index takes into account the stock's close the previous day and the distance between its high and low points during the current trading day. Then, this price movement is placed in context to the stocks intraday volume (meaning the number of shares traded during the current session). It gives investors a heads up when stocks are showing significant price changes with accompanying volume.