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Technical Analysis 101: Understanding Trading Volume

Understanding trading volume can give you important technical signals when big institutional investors are both buying and selling, this video will help you learn more.


Join Cabot Wealth Network’s resident Technical Analysis expert Kate Stalter while she discusses the importance of understanding trading volume and how it signals institutional trading patterns. Kate highlights accumulation cues and discusses big selling volume as a possible indicator you can use to exit a position. Next, Kate looks at the Up/Down Volume Ratio as a gauge of investors’ sentiment about stocks. Lastly, Kate shares a free website that you can use when performing your own trading volume analysis and shows how investors can use an indicator called an Accumulation-Distribution (AD) Line in lieu of a close reading of volume. The stocks included in this video are for demonstration purposes only and are not recommended securities.

What volume indicators do you look at when trading?


Kate Stalter is a Series 65-licensed asset manager, with more than two decades of experience in various areas of financial services. As an investment advisor and financial planner, Kate personally manages client portfolios, with a focus on successful retirement, including asset allocation, income generation and tax strategies.