Downtick Volume

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DEFINITION of 'Downtick Volume'

The share volume of a security that trades at a price lower than its previous price.

INVESTOPEDIA EXPLAINS 'Downtick Volume'

Technical analysts use downtick volume to calculate a security's net volume, which may provide a buy or sell signal.

RELATED TERMS
  1. Uptick

    A transaction for a financial instrument that occurs at a higher ...
  2. Volume

    The number of shares or contracts traded in a security or an ...
  3. Up Volume

    A stock volume that closes at a price higher than the previous ...
  4. Net Volume

    A term in technical analysis that represents a security's uptick ...
  5. Uptick Volume

    The volume of shares of a security that are traded when the price ...
  6. Downtick

    A transaction on an exchange that occurs at a price below the ...
RELATED FAQS
  1. What is a common strategy traders implement when using the Uptick Volume?

    Uptick volume is used to identify trends and momentum of a stock to the upside. It shows how much demand there is for a stock ... Read Full Answer >>
  2. What is the Uptick Volume formula and how is it calculated?

    Uptick volume measures the volume of trades that occur when the price of an underlying asset is increasing. This measurement ... Read Full Answer >>
  3. Why does the efficient market hypothesis state that technical analysis is bunk?

    The efficient market hypothesis (EMH) suggests that markets are informationally efficient. This means that historical prices ... Read Full Answer >>
  4. What are the advantages and disadvantages of using systematic sampling?

    As a statistical sampling method, systematic sampling is simpler and more straightforward than random sampling. It can also ... Read Full Answer >>
  5. How effective is creating trade entries after spotting a Tri-Star pattern?

    The tri-star patterns, both bullish and bearish, are about as rare as they are unreliable. Comprised of three consecutive ... Read Full Answer >>
  6. How important are descending tops for a trading strategy?

    The descending tops pattern is one of the most commonly occurring chart formations in technical analysis. In trading terminology, ... Read Full Answer >>
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