Learning what Technical Indicators work best with other technical indicators can be a lot like untangling a ball of rubber bands.

In Trading U, Rob Roy discusses how Price and Volume work together.

In a bullish trend verify that price is up and average volume is also increasing to support the bullish move.

​​​​​​​In a bearish trend, verify that the price is down and the average volume is increasing to support the bearish move.

In an uptrend nearing a resistance, verify that the price is down (retracing) and the average volume is dropping. You have a potential reversal of the retracement and a break of resistance.

​​​​​​​​​​​​​​In a downtrend near a support line, verify that the price is moving up from support (retracing) but the volume is decreasing.  You have a potential reversal of the retracement and a break of the support.

Price and Volume Cliff Notes
Bull – Price going up, Volume going up
Bearish – Price going down, Volume going up
Potential Bear Reversal at support – Price going up, Volume going down
Potential Bull Reversal at resistance – Price going down, Volume going down​​​​​​​

​​​​​​​The main question is the volume supporting the price direction?

Average daily volume with a 21 simple moving average will give you a great picture of the last 21 trading days (about a month). This will help you see at a glance if the volume is greater than average or less than average.

Learn more about Technical indicators in TRADING U

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