{"id":140,"date":"2026-08-14T13:03:11","date_gmt":"2026-08-14T13:03:11","guid":{"rendered":"https:\/\/www.austockmarket.com\/universe\/?p=140"},"modified":"2026-08-14T13:07:08","modified_gmt":"2026-08-14T13:07:08","slug":"lesson-9-why-volume-matters","status":"publish","type":"post","link":"https:\/\/www.austockmarket.com\/universe\/lesson-9-why-volume-matters\/","title":{"rendered":"Lesson 9 &#8211; Why Volume Matters"},"content":{"rendered":"<style>\r\n.au-ta9{font-family:Arial,sans-serif;background:#F5F8FC;color:#17233C;max-width:900px;margin:20px auto;border:1px solid #DCE4EF;border-radius:18px;overflow:hidden;box-shadow:0 6px 25px rgba(6,43,114,.08)}\r\n.au-ta9 *{box-sizing:border-box}\r\n.au-ta9-head{background:#062B72;color:#fff;padding:25px 22px}\r\n.au-ta9-kicker{font-size:12px;font-weight:700;color:#39E600;letter-spacing:1px}\r\n.au-ta9-head h2{margin:7px 0 5px;font-size:27px;color:#fff}\r\n.au-ta9-head p{margin:0;color:#DCE4EF}\r\n.au-ta9-progress{height:6px;background:#DCE4EF}\r\n.au-ta9-bar{height:6px;background:#25D900;width:7.14%;transition:.3s}\r\n.au-ta9-body{padding:24px}\r\n.au-ta9-frame{display:none;min-height:440px}\r\n.au-ta9-frame.active{display:block;animation:au9fade .35s ease}\r\n@keyframes au9fade{from{opacity:0;transform:translateY(8px)}to{opacity:1;transform:none}}\r\n.au-ta9-num{display:inline-block;background:#062B72;color:#fff;border-radius:20px;padding:6px 12px;font-size:12px;font-weight:700}\r\n.au-ta9 h3{font-size:25px;color:#062B72;margin:15px 0 10px}\r\n.au-ta9 p{font-size:16px;line-height:1.65}\r\n.au-ta9-card{background:#fff;border:1px solid #DCE4EF;border-radius:14px;padding:20px;margin:18px 0}\r\n.au-ta9-grid{display:grid;grid-template-columns:repeat(3,1fr);gap:14px;margin-top:20px}\r\n.au-ta9-box{background:#fff;border:1px solid #DCE4EF;border-radius:12px;padding:18px;text-align:center}\r\n.au-ta9-box strong{display:block;font-size:24px;color:#062B72;margin-bottom:6px}\r\n.au-ta9-green{color:#25D900!important}\r\n.au-ta9-chart{background:#fff;border:1px solid #DCE4EF;border-radius:14px;padding:12px;margin:18px 0}\r\n.au-ta9-chart svg{width:100%;height:auto}\r\n.au-ta9-callout{border-left:5px solid #25D900;background:#fff;padding:16px 18px;border-radius:10px;margin:18px 0}\r\n.au-ta9-pill{display:inline-block;background:#F5F8FC;border:1px solid #DCE4EF;border-radius:25px;padding:9px 14px;margin:5px;font-weight:700}\r\n.au-ta9-q{font-weight:700;color:#062B72;font-size:18px}\r\n.au-ta9-option{display:block;width:100%;text-align:left;background:#fff;border:1px solid #DCE4EF;border-radius:10px;padding:13px;margin:9px 0;cursor:pointer;font-size:15px;color:#17233C}\r\n.au-ta9-option:hover{border-color:#25D900}\r\n.au-ta9-option.correct{background:#25D900;border-color:#25D900;color:#041D4D}\r\n.au-ta9-option.wrong{border-color:#062B72}\r\n.au-ta9-answer{display:none;margin-top:10px;font-weight:700}\r\n.au-ta9-nav{display:flex;justify-content:space-between;align-items:center;border-top:1px solid #DCE4EF;padding-top:18px}\r\n.au-ta9-btn{border-radius:9px;padding:12px 20px;font-weight:700;cursor:pointer;font-size:15px}\r\n.au-ta9-prev{background:#fff;border:1px solid #062B72;color:#062B72}\r\n.au-ta9-next{background:#25D900;border:0;color:#041D4D}\r\n.au-ta9-count{font-size:13px;font-weight:700;color:#062B72}\r\n.au-ta9-complete{background:#041D4D;color:#fff;border-radius:16px;padding:35px;text-align:center}\r\n.au-ta9-complete h3{color:#fff}\r\n.au-ta9-xp{font-size:26px;color:#39E600;font-weight:800;margin:15px}\r\n@media(max-width:600px){\r\n.au-ta9{margin:10px;border-radius:14px}\r\n.au-ta9-head h2{font-size:23px}\r\n.au-ta9-body{padding:16px}\r\n.au-ta9-frame{min-height:470px}\r\n.au-ta9-grid{grid-template-columns:1fr}\r\n.au-ta9 h3{font-size:22px}\r\n}\r\n<\/style>\r\n\r\n<div class=\"au-ta9\" id=\"auTA9\">\r\n\r\n<div class=\"au-ta9-head\">\r\n<div class=\"au-ta9-kicker\">AU STOCK MARKET \u2022 TECHNICAL ANALYSIS ACADEMY<\/div>\r\n<h2>Lesson 9 \u2014 Why Volume Matters<\/h2>\r\n<p>Learn how trading volume can help confirm price movements.<\/p>\r\n<\/div>\r\n\r\n<div class=\"au-ta9-progress\"><div class=\"au-ta9-bar\"><\/div><\/div>\r\n\r\n<div class=\"au-ta9-body\">\r\n\r\n<!-- FRAME 1 -->\r\n<section class=\"au-ta9-frame active\">\r\n<span class=\"au-ta9-num\">01 \/ 14<\/span>\r\n<h3>What Is Volume?<\/h3>\r\n<p><strong>Volume<\/strong> tells us how many shares changed hands during a particular period.<\/p>\r\n\r\n<div class=\"au-ta9-grid\">\r\n<div class=\"au-ta9-box\"><strong>Low<\/strong>Less trading activity<\/div>\r\n<div class=\"au-ta9-box\"><strong>Normal<\/strong>Typical activity<\/div>\r\n<div class=\"au-ta9-box\"><strong>High<\/strong>Heavy activity<\/div>\r\n<\/div>\r\n\r\n<div class=\"au-ta9-callout\">\r\nVolume does not tell you whether a stock will rise or fall. It helps you understand the level of participation behind a price movement.\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 2 -->\r\n<section class=\"au-ta9-frame\">\r\n<span class=\"au-ta9-num\">02 \/ 14<\/span>\r\n<h3>Where Do You See Volume?<\/h3>\r\n<p>On most stock charts, volume appears as vertical bars underneath the price chart.<\/p>\r\n\r\n<div class=\"au-ta9-chart\">\r\n<svg viewBox=\"0 0 700 330\">\r\n<line x1=\"60\" y1=\"260\" x2=\"660\" y2=\"260\" stroke=\"#DCE4EF\" stroke-width=\"2\"\/>\r\n<polyline points=\"70,210 150,190 230,205 310,145 390,155 470,100 550,115 630,65\"\r\nstroke=\"#062B72\" stroke-width=\"5\" fill=\"none\"\/>\r\n<rect x=\"80\" y=\"225\" width=\"35\" height=\"35\" fill=\"#25D900\"\/>\r\n<rect x=\"160\" y=\"205\" width=\"35\" height=\"55\" fill=\"#25D900\"\/>\r\n<rect x=\"240\" y=\"215\" width=\"35\" height=\"45\" fill=\"#25D900\"\/>\r\n<rect x=\"320\" y=\"180\" width=\"35\" height=\"80\" fill=\"#25D900\"\/>\r\n<rect x=\"400\" y=\"205\" width=\"35\" height=\"55\" fill=\"#25D900\"\/>\r\n<rect x=\"480\" y=\"135\" width=\"35\" height=\"125\" fill=\"#25D900\"\/>\r\n<rect x=\"560\" y=\"190\" width=\"35\" height=\"70\" fill=\"#25D900\"\/>\r\n<text x=\"70\" y=\"300\" fill=\"#17233C\" font-size=\"17\">Volume bars<\/text>\r\n<\/svg>\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 3 -->\r\n<section class=\"au-ta9-frame\">\r\n<span class=\"au-ta9-num\">03 \/ 14<\/span>\r\n<h3>Price + Volume<\/h3>\r\n<p>Technical analysts often examine price and volume together rather than studying price alone.<\/p>\r\n\r\n<div class=\"au-ta9-grid\">\r\n<div class=\"au-ta9-box\">\r\n<strong>Price \u2191<\/strong>\r\nWhat is price doing?\r\n<\/div>\r\n<div class=\"au-ta9-box\">\r\n<strong>Volume \u2191<\/strong>\r\nHow much activity?\r\n<\/div>\r\n<div class=\"au-ta9-box\">\r\n<strong>Both \u2191<\/strong>\r\nStronger participation\r\n<\/div>\r\n<\/div>\r\n\r\n<p>The relationship between price and volume can provide useful context.<\/p>\r\n<\/section>\r\n\r\n<!-- FRAME 4 -->\r\n<section class=\"au-ta9-frame\">\r\n<span class=\"au-ta9-num\">04 \/ 14<\/span>\r\n<h3>Why Does Volume Matter?<\/h3>\r\n<p>A price move accompanied by increased trading activity can indicate that more market participants are involved.<\/p>\r\n\r\n<div class=\"au-ta9-card\">\r\n<div class=\"au-ta9-pill\">\ud83d\udcc8 Price movement<\/div>\r\n<div class=\"au-ta9-pill\">\ud83d\udcca Trading activity<\/div>\r\n<div class=\"au-ta9-pill\">\ud83d\udc65 Market participation<\/div>\r\n<\/div>\r\n\r\n<div class=\"au-ta9-callout\">\r\nThink of volume as a clue about the level of activity behind a price move \u2014 not as a guarantee of what happens next.\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 5 -->\r\n<section class=\"au-ta9-frame\">\r\n<span class=\"au-ta9-num\">05 \/ 14<\/span>\r\n<h3>Rising Price + Rising Volume<\/h3>\r\n\r\n<div class=\"au-ta9-chart\">\r\n<svg viewBox=\"0 0 700 350\">\r\n<polyline points=\"60,270 150,240 240,245 330,190 420,175 510,115 620,70\"\r\nstroke=\"#25D900\" stroke-width=\"6\" fill=\"none\"\/>\r\n<rect x=\"100\" y=\"275\" width=\"40\" height=\"35\" fill=\"#DCE4EF\"\/>\r\n<rect x=\"190\" y=\"255\" width=\"40\" height=\"55\" fill=\"#DCE4EF\"\/>\r\n<rect x=\"280\" y=\"235\" width=\"40\" height=\"75\" fill=\"#25D900\"\/>\r\n<rect x=\"370\" y=\"210\" width=\"40\" height=\"100\" fill=\"#25D900\"\/>\r\n<rect x=\"460\" y=\"170\" width=\"40\" height=\"140\" fill=\"#25D900\"\/>\r\n<rect x=\"550\" y=\"125\" width=\"40\" height=\"185\" fill=\"#25D900\"\/>\r\n<\/svg>\r\n<\/div>\r\n\r\n<p>When price rises while volume also increases, it can suggest stronger participation in the upward move.<\/p>\r\n<\/section>\r\n\r\n<!-- FRAME 6 -->\r\n<section class=\"au-ta9-frame\">\r\n<span class=\"au-ta9-num\">06 \/ 14<\/span>\r\n<h3>Rising Price + Falling Volume<\/h3>\r\n\r\n<div class=\"au-ta9-chart\">\r\n<svg viewBox=\"0 0 700 350\">\r\n<polyline points=\"60,270 150,230 240,195 330,145 420,105 510,75 620,55\"\r\nstroke=\"#062B72\" stroke-width=\"6\" fill=\"none\"\/>\r\n<rect x=\"100\" y=\"120\" width=\"40\" height=\"190\" fill=\"#25D900\"\/>\r\n<rect x=\"190\" y=\"155\" width=\"40\" height=\"155\" fill=\"#25D900\"\/>\r\n<rect x=\"280\" y=\"190\" width=\"40\" height=\"120\" fill=\"#25D900\"\/>\r\n<rect x=\"370\" y=\"220\" width=\"40\" height=\"90\" fill=\"#25D900\"\/>\r\n<rect x=\"460\" y=\"245\" width=\"40\" height=\"65\" fill=\"#25D900\"\/>\r\n<rect x=\"550\" y=\"260\" width=\"40\" height=\"50\" fill=\"#25D900\"\/>\r\n<\/svg>\r\n<\/div>\r\n\r\n<p>A rising price with declining volume can signal that participation is weakening. It does not automatically mean the trend will reverse.<\/p>\r\n<\/section>\r\n\r\n<!-- FRAME 7 -->\r\n<section class=\"au-ta9-frame\">\r\n<span class=\"au-ta9-num\">07 \/ 14<\/span>\r\n<h3>Volume Can Confirm a Breakout<\/h3>\r\n<p>Suppose a share has been trading below resistance for several weeks.<\/p>\r\n\r\n<div class=\"au-ta9-chart\">\r\n<svg viewBox=\"0 0 700 350\">\r\n<line x1=\"50\" y1=\"100\" x2=\"650\" y2=\"100\" stroke=\"#062B72\" stroke-width=\"4\" stroke-dasharray=\"10 7\"\/>\r\n<polyline points=\"60,220 140,175 210,210 280,165 350,195 420,145 475,105 530,70 620,35\"\r\nstroke=\"#25D900\" stroke-width=\"6\" fill=\"none\"\/>\r\n<rect x=\"100\" y=\"275\" width=\"35\" height=\"35\" fill=\"#DCE4EF\"\/>\r\n<rect x=\"180\" y=\"260\" width=\"35\" height=\"50\" fill=\"#DCE4EF\"\/>\r\n<rect x=\"260\" y=\"275\" width=\"35\" height=\"35\" fill=\"#DCE4EF\"\/>\r\n<rect x=\"340\" y=\"255\" width=\"35\" height=\"55\" fill=\"#DCE4EF\"\/>\r\n<rect x=\"420\" y=\"230\" width=\"35\" height=\"80\" fill=\"#DCE4EF\"\/>\r\n<rect x=\"500\" y=\"155\" width=\"35\" height=\"155\" fill=\"#25D900\"\/>\r\n<\/svg>\r\n<\/div>\r\n\r\n<p>A breakout accompanied by noticeably higher volume can provide stronger confirmation than a breakout occurring on unusually low volume.<\/p>\r\n<\/section>\r\n\r\n<!-- FRAME 8 -->\r\n<section class=\"au-ta9-frame\">\r\n<span class=\"au-ta9-num\">08 \/ 14<\/span>\r\n<h3>Low Volume Breakouts Need Caution<\/h3>\r\n\r\n<div class=\"au-ta9-card\">\r\n<p>Imagine a share moves above resistance, but only a small number of shares are traded.<\/p>\r\n\r\n<div style=\"font-size:38px;text-align:center;margin:15px\">\ud83d\udcc8 + Breakout<\/div>\r\n<div style=\"font-size:38px;text-align:center\">\ud83d\udcca Low Volume<\/div>\r\n<\/div>\r\n\r\n<div class=\"au-ta9-callout\">\r\nThis may deserve extra confirmation. Price could quickly return below the breakout level.\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 9 -->\r\n<section class=\"au-ta9-frame\">\r\n<span class=\"au-ta9-num\">09 \/ 14<\/span>\r\n<h3>Volume Spikes<\/h3>\r\n<p>A sudden increase in volume compared with recent activity is called a <strong>volume spike<\/strong>.<\/p>\r\n\r\n<div class=\"au-ta9-chart\">\r\n<svg viewBox=\"0 0 700 320\">\r\n<rect x=\"80\" y=\"220\" width=\"50\" height=\"70\" fill=\"#DCE4EF\"\/>\r\n<rect x=\"170\" y=\"205\" width=\"50\" height=\"85\" fill=\"#DCE4EF\"\/>\r\n<rect x=\"260\" y=\"215\" width=\"50\" height=\"75\" fill=\"#DCE4EF\"\/>\r\n<rect x=\"350\" y=\"195\" width=\"50\" height=\"95\" fill=\"#DCE4EF\"\/>\r\n<rect x=\"440\" y=\"65\" width=\"50\" height=\"225\" fill=\"#25D900\"\/>\r\n<rect x=\"530\" y=\"210\" width=\"50\" height=\"80\" fill=\"#DCE4EF\"\/>\r\n<text x=\"425\" y=\"45\" fill=\"#062B72\" font-size=\"19\" font-weight=\"bold\">Volume Spike<\/text>\r\n<\/svg>\r\n<\/div>\r\n\r\n<p>A spike can occur around important news, a breakout, a major price move or increased market interest.<\/p>\r\n<\/section>\r\n\r\n<!-- FRAME 10 -->\r\n<section class=\"au-ta9-frame\">\r\n<span class=\"au-ta9-num\">10 \/ 14<\/span>\r\n<h3>Volume Is Not a Buy or Sell Signal<\/h3>\r\n\r\n<div class=\"au-ta9-grid\">\r\n<div class=\"au-ta9-box\">\r\n<strong>Volume \u2191<\/strong>\r\nDoesn't automatically mean BUY\r\n<\/div>\r\n<div class=\"au-ta9-box\">\r\n<strong>Volume \u2193<\/strong>\r\nDoesn't automatically mean SELL\r\n<\/div>\r\n<div class=\"au-ta9-box\">\r\n<strong>Context<\/strong>\r\nAlways matters\r\n<\/div>\r\n<\/div>\r\n\r\n<p>Volume becomes more useful when combined with price structure, trend, support, resistance and other evidence.<\/p>\r\n<\/section>\r\n\r\n<!-- FRAME 11 -->\r\n<section class=\"au-ta9-frame\">\r\n<span class=\"au-ta9-num\">11 \/ 14<\/span>\r\n<h3>\ud83c\udde6\ud83c\uddfa Australian Market Example<\/h3>\r\n<p>Imagine an ASX-listed mining share breaks above a resistance level after trading sideways for several weeks.<\/p>\r\n\r\n<div class=\"au-ta9-card\">\r\n<div class=\"au-ta9-grid\">\r\n<div class=\"au-ta9-box\"><strong>Before<\/strong>Low activity<\/div>\r\n<div class=\"au-ta9-box\"><strong>Breakout<\/strong>Price rises<\/div>\r\n<div class=\"au-ta9-box\"><strong>Volume<\/strong>Jumps higher<\/div>\r\n<\/div>\r\n<\/div>\r\n\r\n<div class=\"au-ta9-callout\">\r\nFor an Australian investor studying the chart, the increase in volume could provide useful confirmation that market participation has increased.\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 12 -->\r\n<section class=\"au-ta9-frame\">\r\n<span class=\"au-ta9-num\">12 \/ 14<\/span>\r\n<h3>Three Simple Volume Questions<\/h3>\r\n\r\n<div class=\"au-ta9-card\">\r\n<p><strong>1.<\/strong> Is volume increasing or decreasing?<\/p>\r\n<p><strong>2.<\/strong> Is volume confirming the price movement?<\/p>\r\n<p><strong>3.<\/strong> Is today's volume unusual compared with recent activity?<\/p>\r\n<\/div>\r\n\r\n<p>These questions are a simple starting point for reading volume.<\/p>\r\n<\/section>\r\n\r\n<!-- FRAME 13 -->\r\n<section class=\"au-ta9-frame\">\r\n<span class=\"au-ta9-num\">13 \/ 14<\/span>\r\n<h3>\ud83e\udde0 Chart Detective<\/h3>\r\n\r\n<div class=\"au-ta9-card\">\r\n<p class=\"au-ta9-q\">A share breaks above resistance and its trading volume is significantly higher than the previous several sessions. What might this tell you?<\/p>\r\n\r\n<button class=\"au-ta9-option\" onclick=\"auTA9Answer(this,false)\">\r\nA. The breakout is guaranteed to succeed.\r\n<\/button>\r\n\r\n<button class=\"au-ta9-option\" onclick=\"auTA9Answer(this,true)\">\r\nB. Higher participation is supporting the price move.\r\n<\/button>\r\n\r\n<button class=\"au-ta9-option\" onclick=\"auTA9Answer(this,false)\">\r\nC. Volume proves the share must keep rising.\r\n<\/button>\r\n\r\n<div class=\"au-ta9-answer\"><\/div>\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 14 -->\r\n<section class=\"au-ta9-frame\">\r\n<span class=\"au-ta9-num\">14 \/ 14<\/span>\r\n\r\n<div class=\"au-ta9-complete\">\r\n<div style=\"font-size:52px\">\ud83c\udfc6<\/div>\r\n<h3>Lesson Complete!<\/h3>\r\n\r\n<p>You now understand why volume matters when analysing price movements.<\/p>\r\n\r\n<div class=\"au-ta9-xp\">+100 XP<\/div>\r\n\r\n<p style=\"color:#DCE4EF\">\r\nRemember:<br><br>\r\n<strong style=\"color:#39E600\">Price tells you what happened.<\/strong><br>\r\n<strong style=\"color:#39E600\">Volume tells you how much activity accompanied it.<\/strong>\r\n<\/p>\r\n\r\n<p>Next: Understanding Timeframes<\/p>\r\n<\/div>\r\n<\/section>\r\n\r\n<div class=\"au-ta9-nav\">\r\n<button class=\"au-ta9-btn au-ta9-prev\" onclick=\"auTA9Move(-1)\">\u2190 Previous<\/button>\r\n<span class=\"au-ta9-count\">1 \/ 14<\/span>\r\n<button class=\"au-ta9-btn au-ta9-next\" onclick=\"auTA9Move(1)\">Next \u2192<\/button>\r\n<\/div>\r\n\r\n<\/div>\r\n<\/div>\r\n\r\n<script>\r\n(function(){\r\nlet i=0;\r\nconst box=document.getElementById('auTA9');\r\nconst frames=box.querySelectorAll('.au-ta9-frame');\r\n\r\nfunction show(n){\r\ni=Math.max(0,Math.min(n,frames.length-1));\r\nframes.forEach((x,k)=>x.classList.toggle('active',k===i));\r\nbox.querySelector('.au-ta9-count').textContent=(i+1)+' \/ '+frames.length;\r\nbox.querySelector('.au-ta9-bar').style.width=((i+1)\/frames.length*100)+'%';\r\nbox.querySelector('.au-ta9-prev').style.visibility=i?'visible':'hidden';\r\nbox.querySelector('.au-ta9-next').textContent=i===frames.length-1?'\u2713 Complete':'Next \u2192';\r\n}\r\n\r\nwindow.auTA9Move=function(n){\r\nshow(i+n);\r\n};\r\n\r\nwindow.auTA9Answer=function(btn,correct){\r\nconst card=btn.parentElement;\r\ncard.querySelectorAll('.au-ta9-option').forEach(x=>x.disabled=true);\r\nconst answer=card.querySelector('.au-ta9-answer');\r\nanswer.style.display='block';\r\n\r\nif(correct){\r\nbtn.classList.add('correct');\r\nanswer.style.color='#25D900';\r\nanswer.textContent='\u2713 Correct! Higher volume means more trading activity is accompanying the breakout. It provides confirmation, not a guarantee.';\r\n}else{\r\nbtn.classList.add('wrong');\r\nanswer.style.color='#062B72';\r\nanswer.textContent='Not quite. Volume can provide confirmation of participation, but it cannot guarantee what happens next.';\r\n}\r\n};\r\n\r\nshow(0);\r\n})();\r\n<\/script>\n<p style=\"text-align: justify;\">Price tells us what happened in the market, but <strong>volume tells us how much trading activity accompanied that price movement<\/strong>. This makes volume an important part of technical analysis.<\/p>\n<p style=\"text-align: justify;\">Volume represents the number of shares traded during a particular period. By comparing price movements with volume, traders can look for confirmation, changes in market participation and potentially important areas on a chart.<\/p>\n<p style=\"text-align: justify;\">For Australian investors and traders, understanding volume can be especially useful when studying <a href=\"https:\/\/www.austockmarket.com\/\">ASX-listed shares<\/a>, ETFs and market indices.<\/p>\n<p><strong>What You Will Learn<\/strong><\/p>\n<ul>\n<li>What trading volume means<\/li>\n<li>How volume appears on a stock chart<\/li>\n<li>Why traders compare price and volume<\/li>\n<li>Rising price with rising volume<\/li>\n<li>Rising price with falling volume<\/li>\n<li>How volume can help confirm breakouts<\/li>\n<li>Why low-volume breakouts require caution<\/li>\n<li>What volume spikes can indicate<\/li>\n<li>How to use volume as part of a broader technical-analysis process<\/li>\n<\/ul>\n<p><strong>Key Concept<\/strong><\/p>\n<p><strong>Price + Volume = Better Market Context<\/strong><\/p>\n<p style=\"text-align: justify;\">When price moves significantly and volume also increases, it can indicate greater participation in that move. When price moves while volume declines, traders may pay closer attention to whether participation is weakening.<\/p>\n<p style=\"text-align: justify;\">However, <strong>volume is not a guaranteed buy or sell signal<\/strong>. It should be considered alongside trend, support, resistance, price action and other technical evidence.<\/p>\n<h5>Australian Market Example<\/h5>\n<p style=\"text-align: justify;\">Imagine an <a href=\"https:\/\/www.austockmarket.com\/category\/metal-companies-in-australia\/\">ASX-listed mining company<\/a> has traded sideways for several weeks. The share price then breaks above resistance while trading volume rises significantly above its recent average.<\/p>\n<p style=\"text-align: justify;\">The higher volume may suggest that more market participants are involved in the breakout. A technical analyst would still look for additional confirmation rather than assuming the breakout must succeed.<\/p>\n<h4>Key Takeaway<\/h4>\n<blockquote><p><strong>Price tells you what happened. Volume tells you how much trading activity accompanied it.<\/strong><\/p><\/blockquote>\n<p>Learning to read the relationship between price and volume is an important step towards understanding breakouts, trends and market participation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Price tells us what happened in the market, but volume tells us how much trading activity accompanied that price movement. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_theme","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[8],"tags":[],"class_list":["post-140","post","type-post","status-publish","format-standard","hentry","category-technical-analysis-foundations"],"rttpg_featured_image_url":null,"rttpg_author":{"display_name":"AU Stock Market Universe","author_link":"https:\/\/www.austockmarket.com\/universe\/author\/asxuniadmin\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/www.austockmarket.com\/universe\/category\/technical-analysis\/technical-analysis-foundations\/\" rel=\"category tag\">Technical Analysis Foundations<\/a>","rttpg_excerpt":"Price tells us what happened in the market, but volume tells us how much trading activity accompanied that price movement. [&hellip;]","_links":{"self":[{"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/posts\/140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/comments?post=140"}],"version-history":[{"count":0,"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/posts\/140\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/media?parent=140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/categories?post=140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/tags?post=140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}