What is IEV? Understanding Key Indicators in the Indonesian Capital Market

Jakarta, Pintu News – IEV is a term that often appears in stock trading reports on the Indonesia Stock Exchange, but many investors do not know its exact meaning. More than just a stock code, IEV is Indicative Equilibrium Volume, a technical indicator that shows the estimated volume of transactions that may occur at the Indicative Equilibrium Price (IEP) before the market opens or closes.

This information is becoming increasingly relevant as trading activity increases amid volatile global sentiment. With retail and institutional investors increasingly actively assessing the market on a daily basis, understanding IEV can help with more effective order execution strategies.

IEV on the Indonesia Stock Exchange: Pre-Opening and Pre-Closing Transaction Volume Indicators

In the Indonesian stock market, IEV is the projected volume that may occur at the equilibrium price (IEP) during the pre-opening or pre-closing session. This volume is calculated based on the entire queue of incoming buy and sell orders before regular trading begins or ends.

In other words, IEV helps investors assess how much interest the market has in a particular price before trading actually begins. Investors often use IEV data to decide whether to place orders at prices that are expected to be liquid.

Recent data from IDX reports show that the average IEV in LQ45 and IDX30 stocks has increased significantly recently. This reflects that market enthusiasm, especially from retail investors, has increased in a time of global market volatility.

High indicative volume also signals that the equilibrium price at the opening or closing session is likely to attract large participation. Institutional investors also pay attention to IEV as an additional indicator to predict short-term market behavior.

Also read: Understanding IEP in Stocks: Exchange Terms and Often-Misinterpreted Global Stock Codes

In addition to helping anticipate liquidity, IEV is also used as a gauge of market psychology ahead of the life phase of a trading session. When the IEV is high but the price on the IEP is relatively stagnant, it can indicate that there is pressure from the supply or demand side that is balanced.

Conversely, low IEV indicates small volumes and possibly high volatility after the regular session opens. IDX data as of last week recorded several leading stocks with IEVs above the historical average, indicating market participants’ focus on these stocks.

The Role of IEV in Trading Strategies and the Risks to Watch Out for

Investors often combine IEV with IEP to devise better entry and exit strategies. Using IEV data, traders can estimate the potential for large volumes or early breakouts that could occur when the market changes from the pre-market session to the main session.

This provides additional information in addition to other technical indicators such as moving averages or RSI. In some cases, IEV spikes are an early sign that price momentum is likely to be strong at the open.

Keep in mind, however, that while IEV gives an idea of the estimated volume, it is not a guarantee that the real volume will be the same when the transaction takes place. Sudden changes in market sentiment – for example, due to the release of economic data, monetary policy or geopolitical news – can quickly alter price and volume dynamics.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

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