from trading view, if a stock go up with good volumes… it is confirmation that stock can go more up from here and rally is sustanable…
and if stock go up with less volumes… it will be a fake rally… and stock can again retrace down after some time or next day…
simiraly… if stock fall with good volumes… than you can say some big players are exiting from stock and stock can fall further…
volumes plays a important role while trading for short term…
but there are also other things with volumes… which you have to watch with volumes… bcz only volumes don’t decide trend of stock…
But there can be two types of volumes : Trading volume and delivery volume…So I am asking for both of them. What if Trading Volume is higher but delivery volume is very less?
it means traders who takes position in that stock they thinks that this upside is for just intraday… and they exit from stock before market close… you can also say that… if stock go up in next trading day… than that rally will be fake… because traders are just laying for intraday… not for short term.
but as i said earlier that only volumes cannot decide trend of stock…
one more way to look in volumes is that… say today volume in bhel is 40 lakh… and average monthly volumes of bhel is 10 lakh… so it is 4 time above average monthly volumes…
so it is also a indication is that now traders/investors are thinking that stock can now go up from here or go down from here… it will not consolidate here…
Thank You Shivam for taking out time for answering my questions.
My Pleasure… Always ready to help you… Ask anytime any question/ queries… i will help you as much as possible…