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Umair Volume-Based Buy/Sell Signals

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A volume-based indicator is a technical analysis tool that utilizes trading volume data to assess market activity and predict potential price movements. By analyzing the number of shares or contracts traded over a specific period, these indicators help confirm trends, identify reversals, or spot divergence between volume and price. Examples include On-Balance Volume (OBV), Volume Weighted Average Price (VWAP), and Chaikin Money Flow. They provide insights into market strength, liquidity, and investor sentiment, aiding traders in validating whether price changes are supported by market participation or likely to reverse. High volume often reinforces trend legitimacy, while low volume may signal weak momentum.

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