In technical analysis, the core observation for confirming a stock's performance or trend relies heavily on the relationship between price movement and trading volume: strong trends are validated when volume increases in the direction of the price move. For instance, observations regarding NVIDIA (NVDA) show that strong price increases following positive news are generally accompanied by high volume, confirming robust buyer conviction and the strength of the bullish momentum. Conversely, low volume during a price move suggests a lack of conviction, and any divergence between price action and volume levels often signals a potential shift in market sentiment.
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This series aims to break down commonly used technical indicators simply and intuitively, helping investors improve their ability to interpret market trends, momentum, and risk. Whether you're a beginner or an experienced trader, you’ll quickly grasp the core logic behind each indicator, avoid common misuses, and strengthen your practical analysis skills.
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