Down Volume

DEFINITION of 'Down Volume'

A stock volume that closes at a price lower than the previous day's close. Down volume occurs when a stock finishes a day of trading at a level lower than its open, meaning that the trading volume for the day was more bearish than bullish.

Also referred to as "down on volume."

BREAKING DOWN 'Down Volume'

If a stock closed at a price lower than the previous day's close, the share volume for that day would be considered down volume. Quite often market participants refer to a day of overall market down volume as a day of bearish volume, due to an overall bearish sentiment sending markets down. Typically days of down volume are more heavy in terms of overall volume than up days.

RELATED TERMS
  1. Up Volume

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

    The total quantity of futures contracts bought and sold during ...
  3. Downtick Volume

    The share volume of a security that trades at a price lower than ...
  4. Volume

    The number of shares or contracts traded in a security or an ...
  5. Low Volume Pullback

    A technical correction toward an area of support that occurs ...
  6. Uptick Volume

    The volume of shares of a security that are traded when the price ...
Related Articles
  1. Options & Futures

    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.
  2. Charts & Patterns

    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.
  3. Trading Strategies

    How To Tackle Intraday Volume

    Measure the flow of intraday volume to estimate the emotional intensity of the crowd.
  4. Technical Indicators

    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.
  5. Active Trading Fundamentals

    What The Market Open Tells You

    The first few moments of trading provide a lot of information. If a trader analyzes this information, it can give a lot of insight into the market's moves for the day.
  6. Technical Indicators

    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.
  7. Active Trading Fundamentals

    How To Choose Stocks For Day Trading

    Day trading entails trading a stock several times over a day in an effort to profit on its price movements. It’s a risky strategy, but can pay big returns.
  8. Investing Basics

    Volume

    Learn about this measure of stock activity and how investors use it to determine trading opportunities.
  9. Options & Futures

    Using Open Interest To Find Bull/Bear Signals

    Volume should inform your use of this indicator in confirming trends and reversals.
  10. Insurance

    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 ...
RELATED FAQS
  1. 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 >>
  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. 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 >>
  4. What are the main differences and similarities between Money Flow Index & On Balance ...

    Understand the basics of On Balance Volume and the Money Flow Index, including their similarities and differences in terms ... Read Answer >>
  5. Why is the Time Segmented Volume (TSV) important for traders and analysts?

    Find out why the Time Segmented Volume (TSV) indicator is considered unique among other types of volume oscillators used ... Read Answer >>
  6. 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 >>
Hot Definitions
  1. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  3. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center