To make real money in the stock market you do not necessarily need to know why share prices rise or fall. All that is important to know are two basic things: When to buy and when to sell.
If you can quantitatively measure the buying and selling pressure of a stock then you will know in advance whether the price is likely to move north or south, up or down. That would tell you whether to take a buy or sell position.
In other words, if you get a reading on the buying pressure and selling pressure for a stock, you can successfully assess whether a stock is likely to go up or go down in price. There are numerous ways to measure the buying and selling pressure of a stock.
The table above presents the buying and selling position of banking stocks on the Nigerian Stock Exchange (NSE) on Tuesday.