Volume Pattern Confirmation

Trending Markets

Short-term
  Trend confirmation:
  1. When prices are rising and also with rising volume it shows a healthy up-trend in the stock.
  2. When prices are falling and also with rising volume signal a healthy down-trend in that stock.
 
   Trend weakness:
  1. When stock prices are rising but with falling volume in the trend signals weakness in the stock price.
  2. When stock prices are falling but also with falling volume it shows that down trend is weak and market may reverse any time.
 
Trending Markets

Long-term
Trend confirmation:
  1. When market makes higher peaks with rise in daily volume at peaks shows healthy up-trend in that stock.
  2. When market makes lower troughs with rise in daily volume at troughs level shows healthy down-trend in the stock.
 
Trend weakness:
  1. When price is making higher highs or higher peaks but same time volume participation is lower at peaks it shows that the up-trend in the stock is getting weak.
  2. When price is making lower lows or lower troughs but the same time volume also shows lack of participation at lower troughs, it shows that the down trend in the stock is getting weak and bullish trend may resume sooner or later. 

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