When is price action validated by volume movement?

Price action is validated by volume movement when the volume confirms the direction of the price trend. For example, in an uptrend, if the volume is increasing as the price goes up and decreasing as the price goes down, it is considered a validation of the trend.

What is volume price analysis?

One popular approach to this analysis is Volume Price Analysis, which looks at the relationship between volume and price to identify trends and potential trade opportunities. In this blog, we’ll explore Volume Price Analysis, how it works, and how you can use it in your trading strategies.

What is price action?

Price action is the movement of a security's price plotted over time. Price action forms the basis for all technical analyses of a stock, commodity or other asset charts. Many short-term traders rely exclusively on price action and the formations and trends extrapolated from it to make trading decisions.