To a technician that believed in the importance of volume,a bullish signal would occur when
A) Prices increase on light volume.
B) Prices decrease on light volume.
C) Prices increase on heavy volume.
D) Prices decrease on heavy volume.
E) None of the above.

Question

Quizplus · Accepted Answer

A technician that believes in the importance of volume believes that price movements should be confirmed by high trading volume, as it indicates strong market participation. Therefore, a bullish signal occurs when prices increase on heavy volume, suggesting that there is strong buying interest in the market. Option A and B (prices increasing or decreasing on light volume) do not provide strong confirmation of market sentiment, while option D suggests a bearish signal. Option E is not a valid answer.

To a Technician That Believed in the Importance of Volume,a