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Buying Volume (Bullish Volume) Also known as Buying VMA surge(s), Buying Volume, Volume to the Upside or Bullish Volume.
We define Buying Volume as any volume that occurs, as an index is moving higher under the pressure of the buyers.
Generally speaking, a volume surge or volume accumulation during the price increase indicates that a large number of high-priced shares are being transferred (i.e., distributed) from one group of market participants to another. Following the surge, the number of those buyers willing to keep buying at these high (-inflated) prices becomes exhausted. Buyers are no longer willing to pay up (i.e., bid up / buy at the ask) - the market has reached a critical point where it is vulnerable to a trend reversal down. |
