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)

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.