- The interpretation and analysis of volume is a basic and most important part of technical analysis.
- The intensity and strength or weakness of a given price move is judged by the accompanying volume.
- Volume is used for confirming the trend and also for confirming the validity of the chart pattern.
- Another important idea in technical analysis is that a price move is preceded by volumes. Volume comes first and then it affects the price.
The following tables shows the relationship between price and volumes.
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| Hero MotoCorp Weekly Chart |
In the above weekly chart (as on 16-05-2020) the price is rising and also volumes are rising, this indicates bullish signal.
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