Downtick Volume

DEFINITION of 'Downtick Volume'

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

BREAKING DOWN '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. Net Volume

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

    The volume of shares of a security that are traded when the price ...
  3. Down Volume

    A stock volume that closes at a price lower than the previous ...
  4. Up Volume

    A stock volume that closes at a price higher than the previous ...
  5. Volume Of Trade

    The total quantity of futures contracts bought and sold during ...
  6. Positive Volume Index - PVI

    An indicator used in technical analysis that is based on days ...
Related Articles
  1. Trading

    How To Use Volume To Improve Your Trading

    The basic guidelines to analyzing volume may not apply in all situations, but overall, they can help direct entry and exit decisions.
  2. Trading

    Interpreting Volume For The Futures Market

    Learn how to read the volume reports, look at the relation to liquidity and interpret volume using open interest.
  3. Trading

    How To Use Volume To Improve Your Trading

    Volume is a simple yet powerful way for traders and investors to increase their profits and minimize risks.
  4. Trading

    Confirming Price Movements With Volume Oscillators

    Use this indicator to validate a change in price direction and moving averages.
  5. Trading

    How To Tackle Intraday Volume

    Measure the flow of intraday volume to estimate the emotional intensity of the crowd.
  6. Trading

    A Guide To Finding The Most Actively Traded Stocks

    Knowing the trading volume of a stock helps traders understand price movements and forecast future movements. This short guide helps investors locate actively traded data.
  7. Managing Wealth

    Use Market Volume Data to Determine a Bottom

    Market bottoms often carve out classic volume patterns that let observant traders make fast and accurate calls.
  8. Managing Wealth

    Is a Stock's Trade Volume Important?

    Stock volume is easy to calculate but understanding its importance is a little more involved. Take the time because it's a worthwhile investing tool.
  9. Trading

    Exploring Oscillators and Indicators: On-Balance Volume

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The on-balance volume indicator (OBV) is one of the most well-known technical indicators and it focuses on the importance ...
  10. Trading

    Using Volume Rate Of Change To Confirm Trends

    Wise traders rely on indicators that show a trend in volume, because without supportive volume, a price movement has no conviction.
RELATED FAQS
  1. What are the best technical indicators to complement the Uptick Volume?

    See how uptick volume can be used to help confirm price trends from nearly every trend-following indicator, especially when ... Read Answer >>
  2. What is the Uptick Volume formula and how is it calculated?

    Learn more about uptick volume, a measurement of the number of trades that take place during a time when an asset's price ... Read Answer >>
  3. What is a common strategy traders implement when using the Uptick Volume?

    Learn how traders use uptick and downtick volume with VWAP cross to identify trends and momentum and identify points of big ... Read Answer >>
  4. Why is the Uptick Volume important for traders and analysts?

    Find out why technical analysts and traders keep track of uptick volume to better assess the momentum of a stock's price ... Read Answer >>
  5. Why is trading volume important to investors?

    Learn about trading volume, its importance and how investors analyze volume to confirm a trend or reversal in a security. Read Answer >>
  6. What is a common strategy traders implement when using the Volatility Ratio?

    Learn how to create a strategy using the volatility ratio with uptick volume and downtick volume to signal reversal of trend ... Read Answer >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center