K Karthik Raja Rupeedesk - Volume Analysis Checklist
(For Momentum Trading & Technical Analysis)
1. General Volume Trends
✅ Is the volume increasing or decreasing over time? (Compare recent volume with historical averages.)
✅ Check for abnormal spikes (Sudden volume increases can indicate accumulation or distribution.)
✅ Compare volume across different time frames (Daily, Weekly, Monthly trends.)
2. Price & Volume Relationship
✅ Price Up + Volume Up → Bullish Confirmation
✅ Price Down + Volume Up → Bearish Confirmation
✅ Price Up + Volume Down → Weak Uptrend (Possible Reversal)
✅ Price Down + Volume Down → Weak Downtrend (Possible Reversal)
3. Breakout Volume Check
✅ Is the breakout supported by high volume? (Breakouts with low volume are weak.)
✅ Compare breakout volume with average volume (50-day or 200-day moving average).
✅ Check if the volume sustains after the breakout.
4. Support & Resistance with Volume
✅ Volume near support levels (High volume at support strengthens the level.)
✅ Volume near resistance levels (High volume near resistance means potential breakout or strong selling.)
✅ Volume-based fakeouts (If price breaks a key level but volume is low, the move may fail.)
5. Reversal & Exhaustion Volume Patterns
✅ Climax Volume (Exhaustion Moves) - Extremely high volume after a long rally/drop may indicate trend exhaustion.
✅ Divergence between price & volume - Price making new highs but volume decreasing? Weak trend.
6. Indicators for Volume Confirmation
✅ Volume Weighted Average Price (VWAP) – Helps track institutional activity.
✅ On-Balance Volume (OBV) – Confirms trends using volume flow.
✅ Chaikin Money Flow (CMF) – Helps detect accumulation/distribution.
✅ Volume Oscillators – Compare short-term & long-term volume trends.
7. Sector & Market Volume Comparison
✅ Compare stock volume with industry peers.
✅ Check overall market volume trend (NSE/BSE/NASDAQ/NYSE).
8. Unusual Volume Alerts
✅ Screen for stocks with sudden volume spikes (Unusual Volume Scanner).
✅ Check if volume is news-driven (Earnings, Announcements, Mergers, etc.).
