Price By Volume Chart - PBV

You just bought some shares of your fave company, Googappleface. They seem to know what they’re doing. But...do you?

You can check out Googappleface’s price by volume chart (PBV chart) to find out. The PBV chart is a histogram. That’s a type of bar chart, with each bar showing a range. We’ve got price level on the y-axis, and time on the x-axis. From there, you can see the different prices people bought shares for at different times. That means that you can see if you got your shares when they were priced lower compared to when everybody else bought theirs, or if you were a short-term sucker that bought them at their most expensive price.

Why only a “short-term” sucker? Because PBV charts are over time. If the share price rises over more time, then you won’t be looking like such a sucker anymore.

Besides judging yourself, you can use PBV charts to get a sense of the support or the lack of it for a security. If the security gets bought at higher and higher prices, it’s a bull market for that one. If it’s bought at higher prices, and then lower, and then higher, that shows some resistance.

Now go and make yourself a PB&J and check out a PBV.