Positive volume development

Both volume balance and the correlation between price development and volume development are positive. This indicates that buyers are aggressive and strong, while sellers are hesitant.

Both volume balance and correlation between price and volume development are considered important indicators. They are often used alongside trend analysis and other indicators based on the stock price.

When both of these are positive at the same time, it is a strong signal of increasing optimism among investors. Volume will often trigger signals early – even before the increasing optimism triggers rising prices.

The following applies when volume development is positive:

Strengthens a buy signal
Weakens a sell signal
Indicates that investors are positive and the rising trend will continue
Indicates that sellers are passive, a falling trend is ending and a trend reversal is near

Generally we want to see positive volume development for stocks we own or will buy. Positive volume indicates a healthy stock with a positive development of the investors’ view of the stock. Such a stock is indicated to continue rising.

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Stocks withPositive volume development

Vicore Pharma Holding

Copperstone Resources

Cantargia

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