How to Use Volume for Buy and Sell Signals?

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Salvatore Carson
Answered 9 months, 2 weeks ago
<p id="isPasted">Volume is one of the key indicators used by active traders to gauge money flow. Indicators that are derived from using volume such as on-balance volume and volume by price can be used to create lucrative trading strategies.</p><p>It's often smart to combine trading signals generated by changes in volume with a shift in a company's fundamentals. Simple stock screens that identify securities with sharp changes in volume are great candidates for traders who are looking to create a watch list.</p><ul><li id="isPasted">Active traders use volume as a key indicator to gauge money flow.</li><li>Volume is the number of shares bought …</li></ul>
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Ruben Sherman
Answered 3 days, 23 hours ago
<p id="isPasted">Use volume to generate buy and sell signals by combining it with price action to confirm trends, validate breakouts, and identify potential reversals. A strong uptrend is confirmed by rising prices with increasing volume, while a strong downtrend is confirmed by falling prices with increasing volume. Conversely, declining volume during a trend can signal weakness and potential reversal, and a price breakout with low volume may be a false move.&nbsp;</p><p><br></p>