Lanzhu0506

[LanZhu] - Turnover Rate

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Description

Turnover rate indicates how much current traded volume compared to total outstanding shares. High turnover rate means current trade is active and possible fund flow in.

Usage

At low position, high turnover rate indicates possible of fund flow in.
At high position, high turnover rate indicates possible of fund ready to flow out.

Better result used with RSI and price action.

Setting

  • Show Active Level ---> Defined of different level of active status
  • Show Active Level Background ---> Background of different level of active status
  • Financial Period ---> Period to define total outstanding shares
  • Minimum Threshold To Stay Active ---> Minimum level of active status to stay active. Default is 3%
Release Notes: V2

- Outstanding Shares Type In Turnover Rate Calculation (Total Common Shares, Float Shares and Diluted Shares)
- MTF Turnover Rate
- Predefined Threshold Or Moving Average Threshold

  • Outstanding Shares Type In Turnover Rate Calculation

1) Total Common Shares Outstanding - Outstanding which exclude treasury shares that held by company
2) Float Shares Outstanding - Outstanding shares which hold among various investors (usually refers to retail investor) in the market after taking out closely-held (By major holder)
3) Diluted Shares Outstanding - Diluted shares outstanding calculation takes into account diluting securities such as convertibles (warrants, options, preferred shares, etc.)

Refer to --> https://corporatefinanceinstitute.com/re...

Normally, turnover rate is calculated using total common shares outstanding which already exclude treasury shares which hold by company. However, we can further know current high TOR whether is caused by major stakeholders are actively trading their shares and vice versa, or both. Hence, I have included option to take different shares type to calculate the TOR. I would normally see if TOR from float shares also high then I can assume currently the shares are actively traded among retail investor as float shares already excluded major stakeholders portion.

  • MTF Turnover Rate

I have included MTF in this version to identify fast detection of spike of TOR in lower timeframe. Yellow triangle indicates default low timeframe detects spike of TOR (default shares type) while Orange x-Cross indicates extra low timeframe detects spike of TOR (extra shares type). YES you can turn on extra shares type (default is float shares type) to further analyze TOR.

  • Predefined Threshold Or Moving Average Threshold

How do we identify spike of TOR ? Well, I have included Fixed (Predefined) and Average of TOR in this version

1) Predefined

Normally, we can define spike of TOR as below

1% - 3% => Normal
3% - 7% => Relatively active
7% - 10% => Active
10% - 15% => Very Active
15% - 25% => Extreme Active
>25% => Abnormal

Well, these are the common study of TOR but your always can change the setting. Default is 3 as minimum threshold to start become relatively active. Current share price might start to move.

1) Moving Average

To better detect spike of TOR, I included average of TOR in certain period. Default is 5 to look back previous 5 days' TOR
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