Volumenbestätigung

Volumenbestätigung, often translated as volume confirmation, is a concept used in technical analysis of financial markets. It refers to the practice of using trading volume data to validate price movements. The core idea is that significant price changes are more likely to be sustained if they are accompanied by high trading volume. Conversely, a price move on low volume might be considered less reliable or a potential false signal.

Analysts observe volume in conjunction with price action. For instance, a strong uptrend in a stock's price is considered more bullish if it occurs on increasing or high volume. This suggests strong conviction from market participants behind the upward price movement. Conversely, if a price is rising but the volume is declining, it might indicate a weakening trend or a lack of broad support for the move.

Similarly, during a downtrend, high volume accompanying price declines lends credibility to the bearish move, suggesting widespread selling pressure. A price drop on low volume could be seen as a less significant event, possibly a temporary setback rather than the start of a major downturn. Volume confirmation is not a standalone indicator but is used in conjunction with other technical tools and indicators to form a more comprehensive view of market sentiment and potential future price direction. It helps traders and analysts distinguish between genuine market trends and transient fluctuations.