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
  1. Downtick Volume

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

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

    The examination of the number of shares or contracts of a security ...
  4. Up Volume

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

    A stock volume that closes at a price lower than the previous ...
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    A technical indicator consisting of a cumulative volume line ...
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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. 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 >>
  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 Ease Of Movement Indicator important for traders and analysts?

    Read more about the ease of movement indicator, a technical momentum oscillator created by Richard Arms to track price changes ... 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. 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 >>
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