Arms' Ease of Movement: Adding Volume to the Equation

by Wayne A. Thorp, CFA

Arms' Ease Of Movement: Adding Volume To The Equation Splash image

Technical analysis is the study of historical price and volume activity with the hope of identifying patterns or behavior that may predict future price movements. For many, however, volume is an afterthought, relegated to a small bar chart below the price chart.

While price movement is of primary importance, volume analysis can play an important role in confirming price trends as well as price breakouts. High volume provides reassurance that a trend will continue while low volume is more prevalent durin

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Wayne A. Thorp, CFA is a vice president and senior financial analyst at AAII and editor of Computerized Investing. Follow him on Twitter at @AAII_CI.


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