If a stock’s price falls with increase in volume, it is generally considered a bearish sign. However in such situations, increased volume also indicates that more number of people have bought that stock on that day. What is the correct logic behind this?
Every trade will have a buy side and sell side, so buy or sell doesnt matter
I feel what matters is who is driving that trade
Price falling with increase volume (trades) means seller is desperate to exit and selling at any price point (even lower than they wish) --> NEGATIVE FOR STOCK
Price increasing with volume (trades) means buyer is desperate to buy and buying at any price point (even higher than they wish) --> POSITIVE FOR STOCK