Volume as Confirmation of Price Action

A stock can rise on any day. What matters is whether the institutions are participating. Volume is the only way to answer that question.

Why This Matters

Volume measures the number of shares traded in a given period. It is the most direct observable measure of institutional participation in a price move. A price move without volume is potentially a thin-market fluctuation driven by retail activity. A price move on high volume is almost certainly driven by institutional buying or selling — the sustainable, sustained activity that creates trends.