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. 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 >>
  2. 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 >>
  3. Why is the Uptick Volume important for traders and analysts?

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  4. What is a common strategy traders implement when using the Uptick Volume?

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  5. Why is the Ease Of Movement Indicator important for traders and analysts?

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