Volume is the number of shares of a security traded over a given period of time.
As a rule, securities with high daily volume are more liquid than those without it, since they are more “active”.
Volume is an important indicator in technical analysis because it is used to measure the relative importance of a market move.
The higher the volume during a price move, the more significant the move is, and the lower the volume during a price move, the less significant the move.
Capitulation occurs when a significant proportion of investors give in to fear and sell within a short period of time, resulting in a sharp drop in the price of a security or market against a backdrop of high trading volume.
The Accumulation/Distribution Line (A/D) measures the supply and demand of an asset or security by looking at where price closed in a period range and then multiplying that by volume.
A bull trap means a reversal that forces market participants who are on the wrong side of the price movement to close positions with unexpected losses.
A bullish engulfing pattern is a candlestick pattern that forms when a small black candlestick the next day is followed by a large white candlestick whose body completely overlaps or engulfs the body of the previous day’s candlestick.
Consolidation is a technical analysis term used to describe the price movement of a stock within a given range of support and resistance over a period of time.