DEFINITION of 'Downtick Volume'

The share volume of a security that trades at a price lower than its previous price.

BREAKING DOWN 'Downtick Volume'

Technical analysts use downtick volume to calculate a security's net volume, which may provide a buy or sell signal.

RELATED TERMS
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    Net volume is a technical indicator that's calculated by subtracting ...
  2. Uptick Volume

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  3. Downtick

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RELATED FAQS
  1. How can I calculate a company's forward p/e in Excel?

    Discover why trading volume is higher when the price of a security changes. Supply and demand is the mechanism through which ... Read Answer >>
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    Discover several of the best technical indicators that traders and market analysts use in conjunction with the Positive Volume ... Read Answer >>
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    Learn about how the SEC uses the trading volume formula as one requirement for an exemption to the ban on the resale of restricted ... Read Answer >>
  4. What's the difference between on-balance volume (OBV) and accumulation/distribution?

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