Investopedia

Continue to Site »

Net Volume

Filed Under » , , , , , ,
Dictionary Says

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.
Investopedia Says

Investopedia explains '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.

Articles Of Interest

  1.

    The Basics Of Money Flow

    Learn how this indicator uses both price and volume to record a more complete picture of price action.

  2. 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.

  3. Confirming Price Movements With Volume Oscillators

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

  4. On-Balance Volume: The Way To Smart Money

    This momentum indicator was designed to predict when major market moves would occur.

  5. 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.

  6. 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.

  7. Options Trading Volume And Open Interest

    Learn how these two statistics can give you an edge in trading options.

  8. Market Summary for May 24 2013

    The major U.S. indices moved lower this week, ahead of the long Memorial Day weekend. After reaching all-time highs last week, many traders attributed the sell-off to a combination of profit ...

  9. What Type Of Trader Are You?

    There are different ways stock traders attempt to profit from market movements. Which of the strategies do you use?

  10. Strong Volume Gainers, Can It Continue?

    Volume is one of those indicators that gets overlooked, likely because it's shown by default on almost every chart, making it a little dull. But volume is what drives markets. Big volume jumps ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center