Average Daily Volume Formula in Excel

This guide introduces the Average Daily Volume formula in Excel with MarketXLS, a powerful tool that helps you quickly analyze a stock’s liquidity. By incorporating the Average Daily Volume function, you can make data-driven decisions on trade entries, exits, or portfolio diversification strategies.

Understanding Average Daily Volume

  • Purpose: The Average Daily Volume formula returns the trade volume averaged over a specified period, giving insights into how actively a stock, index, option, or cryptocurrency trades.
  • Key Benefits:
    • Helps evaluate liquidity and trading interest.
    • Aids in identifying heavily traded stocks vs. thinly traded ones.
  • When to Use:
    • Suitable for traders and investors who need to assess historical volume data.
    • Useful for confirming potential market moves based on volume trends.

Syntax and Parameters

=AverageDailyVolume(Symbol)
Parameter Description Required Example
Symbol Symbol for the security, index, option, or crypto. If invalid or license is invalid ? returns "NA". Yes "MSFT"

Return Value:

  • Numeric value representing the average daily trading volume over the specified period.
  • Returns NA if the symbol is invalid, there's a connection error, or the license is invalid.

?? Note: Ensure your MarketXLS license is valid; otherwise, the formula will return NA.

Examples and Usage

Below are various ways to use the AverageDailyVolume formula with different symbol formats:

=AverageDailyVolume("MSFT")                // Regular stock symbol
=AverageDailyVolume("^SPX")                // Index symbol
=AverageDailyVolume("@MSFT 110122C00020000") // Option symbol
=AverageDailyVolume("BTCUSD:DEFAULT")      // Cryptocurrency symbol

? Pro Tip: Reference a cell containing the symbol to avoid manually editing formulas:

=AverageDailyVolume(A2)

Real-World Applications

  • Liquidity Checks: Identify if a stock has enough trading volume for larger orders.
  • Technical Analysis: Combine average volume data with indicators like RSI or SMA to confirm potential breakouts or trend reversals.

Common Questions

  1. Why am I getting “NA”?

    • Check if your Symbol is valid.
    • Ensure your MarketXLS license is active.
    • Verify you have an internet connection for data retrieval.
  2. Can I use this formula for multiple stocks simultaneously?

    • Yes. Reference different cells to apply AverageDailyVolume to various symbols at once.
  3. Are there any performance considerations?

    • Excessive calls in a single workbook might slow down refresh times.
    • Use MarketXLS’s caching features or refresh options for better performance.
  4. Does the function handle different date inputs?

    • This particular function does not require a date parameter. It solely relies on Symbol to retrieve volume data.
  5. What if I need moving averages for volume?

    • Consider using other available MarketXLS technical indicators or combine this formula with additional volume indicators for deeper analysis.

Get Access to 1 Billion Usable Market data points IN YOUR EXCEL SHEETS WITH EASY TO USE EXCEL FUNCTIONS

Get started today
MarketXLS Excel Add-in Tutorial - How to Use Average Daily Volume and Other Financial Formulas
How does MarketXLS work?