Volume patterns RE: 5 million+ sharesVolume patterns
There are certain volume patterns that can be useful to know.
There is often a significant spike in volume at the end of a trend. Referring back to the stock chart above, we can see the volume on the chart spike in early November, as the stock plunges.
The rate of the decline increases as more stock holders sell. You can see the volume bars increasing as this happens.
After the pressure from sellers decreases, the volume of the stock stops falling and quickly recovers.
Another volume pattern is churning. Churning is where volume is very high, but a stock price stays in a tight range. This is very often a precursor to a significant move.
https://www.howtotradestocks.org/stock-chart-volume.html
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