Volume is a great indicator that points to whether the security is going through momentum or not. Its calculation does not include price action factor in its formula, while all other indicators are derived from price action, making it a very reliable indicator to confirm other signals.

In any market, prices are related to the supply and demand in that market including the stock market. Price of a particular stock, according to the theory of supply and demand, will go higher if there is lack of adequate supply and will move lower if supply is high. The stock market price movement follow the same principles. If a stock is high in demand, those who own the stock will demand higher prices, at the same time, buyers see that the stock is worth that price and are willingly paying that price. This results in that stock price move upwards.

In contrast to that if the stock is being dumped by sellers, that will create an increase in supply, prices will go lower because sellers will be willing to reduce their prices to get rid of their stock. As a result of low demand, prices will move lower or decrease. If prices continue to move lower, lower prices will attract buyers which will increase demand for that stock, which will result in prices trending higher. This will form a cyclic movement of the stock price like a bouncing ball.

As we can see Supply and Demand manipulate human emotions which turns full circle to drive supply and demand.

The movement of stock price takes place between two levels known as Support and Resistance. Support and Resistance levels are crucial elements in stock technical analysis. Experienced traders usually use the two levels to trade stocks. A trader may take a long position buying the shares of the stock at the support level and selling it at the resistance level. By determining the support and resistance levels, a trade can determine the direction of the market and use the its volatility to execute successful trades. Newbies should consider gaining knowledge in the trading field from a reliable source and advancing in this knowledge so that they may succeed in the trading field.

It is of great importance that you become trained in the signs that show the changes in market direction. If you spot that price and volume relationship is different from the dominating trend more frequent, you should be prepared for an upcoming change.

It is not mandated that you have to monitor the market every single day, but it is essential that the prevailing trend of the market is monitored to notice any indication of an upcoming market direction reversal or a side-way trend is about to start.

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