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) prices increase on declining volume.

Question

Quizplus · Accepted Answer

A technician who believes in the importance of volume would consider a bullish signal to occur when prices increase on heavy volume. This suggests that there is strong buying pressure behind the price movement, indicating bullish sentiment among investors. Conversely, a decrease in prices on heavy volume would signal bearish sentiment. Light volume may not be seen as significant enough to confirm a trend.

To a Technician That Believed in the Importance of Volume