Volume analysis Part 1 by John C. Lawlor
ARTICLE SYNOPSIS ...Volume analysis
by John C. Lawlor
Historically, volume has had only modest use as a technical analysis factor, even though volume, or
the magnitude of volume, is a most respected market force. Every day, the 15 most active stocks are
listed--a subtle tribute to volume. Most technicians, when referring to price relationships, state that a
large move in price should be on increased volume.
Cumulative Volume (CV) as treated in a recent article in Stocks & Commodities (June 1986), is one basic
measure of volume. The first important requirement for studying CV is to co-plot it with price. T...