Volume Analysis
Technical Analysis
Definition
The study of trading volume patterns to confirm price movements and identify potential trend changes, based on the principle that significant price moves should be accompanied by heavy trading volume.
Key Points
- Volume confirms price movements
- Heavy volume validates breakouts
- Low volume suggests weak conviction
Examples
Breakout on high volume more reliablePrice rise on low volume shows weaknessQuick Info
Category
Technical Analysis
Related Topics
volume confirmation
price volume
accumulation distribution
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