Volume

The volume condition can be included in a momentum investing strategy to assess the liquidity of stocks.

There are two ways to measure liquidity:

1. Volume
2. Value

Volume

Enter the required volume figure in the Volume box. You can choose between average or median volume calculations.

For example, if the average daily volume over the last 252 days is 1 lakh, only stocks with a volume above 1 lakh on a 252-day average basis will be considered. Some investors prefer the median value instead of the average for a more stable measure.

Value

The Value metric is calculated as:

Closing Price × Volume

You can use the Value condition instead of Volume to filter stocks based on liquidity.

For example, if the average daily traded value over the last 252 days is ₹1 crore, only stocks with an average traded value above ₹1 crore will be considered.

Additional Considerations:

• If multiple periods are selected, the longest period is used for the volume or value calculation.
• If ‘0’ is entered in the Volume or Value field, the condition will be ignored in the momentum portfolio calculation.