Net Volume

DEFINITION of 'Net Volume'

A term in technical analysis that represents a security's uptick volume minus its downtick volume over a specified period. The net volume of a stock is a consolidated total of the positive and negative movements of the security over the period. A stock that is said to have had a positive net volume over a given period will have seen greater upward movement in its price than downward.

BREAKING DOWN 'Net Volume'

Net volume is an indicator that is also very similar to the idea of money flow. Along with other such indicators, the aforementioned "money flow index" is a useful indicator of net volume. Often traders use such an indicator to judge the momentum or trend of a stock in order to make assumptions about its future price movements.

RELATED TERMS
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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 >>
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