Heavy volume with rising price
- Healthy sign in the market
- A lot of trading activities going on and buyers are outnumbering sellers
- When volume is heavier than yesterday’s volume, and accompanied by a price increase of at least 1%, it may be signaling a trend reversal from bearish to bullish soon
Light volume with rising price
- Price is losing steam
- Price is going to drop soon, as investors are not willing to pay for the rising price
Heavy volume with declining price
- Troubling sign (investors are bailing out)
- A possible reversal from bullish to bearish
Light volume with declining price
- Bottoming out
- Investors are holding on their stocks rather than selling for lower price
Volume and price are the two important aspects of share market. Volume tells a trader whether there are buyers or sellers for this stock in the market and price tells in which direction they get best seller or buyer.
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