Course Content
Introduction
The stock market is a marketplace where shares of publicly listed companies are bought and sold. It plays a central role in the modern economy, acting as a bridge between businesses that need capital and investors who have money to invest. The origins of the stock market trace back to the early 1600s, when the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. This allowed the company to raise money from the public to fund its trade ventures, in return for a share of the profits. Over time, this concept evolved, and today, stock markets exist all over the world, with major exchanges like the New York Stock Exchange (NYSE), NASDAQ, and London Stock Exchange facilitating trillions of dollars in trade. At its core, the stock market enables businesses to grow. By offering shares to the public through a process called an Initial Public Offering (IPO), companies can raise large amounts of money to expand operations, invest in research, or develop new products—without having to rely solely on banks or private lenders. In return, investors get the opportunity to share in the company’s success through rising share prices and dividends. Investing in the stock market can be a powerful way to build wealth over time. Wise investments in strong companies can generate solid returns, especially when held for the long term. Many individuals have grown their savings substantially by investing in companies that have thrived. However, it’s important to remember that the stock market carries risks. Prices can go up, but they can also go down—sometimes sharply. Economic downturns, company mismanagement, or shifts in the global market can all lead to losses. For beginners, it's essential to approach investing with caution, avoid chasing “get rich quick” schemes, and take the time to understand what you're investing in. In short, the stock market is a powerful tool for economic growth and personal financial development—but like all tools, it must be used wisely.
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Introduction
Stock Markets Around The World
Listing On A Stock Market
How Stocks are Bought and Sold
Trade Date vs Settlement Date, What is T + 2?
What Is A Stock Market Index?
ETF’s and Index Funds
Fundamental Analysis
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Fundamental Analysis Introduction
Understanding Revenue and Profit
Earnings Per Share and PE Ratio
Understanding the Balance Sheet
Understanding Cashflow
Dividends – How Investors Earn Income From Their Shares
What Causes Stock Prices To Rise And Fall
Understanding Market Capitalization
Technical Analysis
Along with Fundamental Analysis, Investors increasingly rely on Technical Analysis to decide whether to buy or sell a stock. Here we will explore the main techniques.
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Introduction to Technical Analysis
How To Read A Price Chart – The Basics
Understanding Support and Resistance Levels
Identifying Trends and Drawing Trendlines
Understanding Moving Averages
Introduction to Momentum Indicators
Chart Patterns – Spotting Setups in the Market
Volume – The Power Behind a Price Movement
Investing Safely and Profitably
How do professionals invest safely and profitably? Some key concepts such as position sizing and stop losses.
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How To Place Trades And Manage Risk
Using A Trailing Stop To Protect Profits and Limit Loss
Diversification and Portfolio Management
Taking Profits
Common Investor Mistakes And How To Avoid Them
A Quick Word On Taxes
Summary and Beginner’s Checklist
10 Must Read Books for Investors and Traders
Beginners guide to investing in the Stock Market

Volume – The Power Behind a Price Movement

 

In technical analysis, price tells you what is happening, but volume tells you how important it is.

 

Think of volume as the fuel behind price action.


If a price move happens with high volume, it’s more likely to be real and sustainable.


If it happens on low volume, it might be weak, temporary, or even a false signal.

 

 

What Is Volume?

 

Volume is the number of shares (or contracts) traded during a specific time period — such as 1 minute, 1 hour, or 1 day.

  • Shown as vertical bars at the bottom of most stock charts

  • Each bar represents total trades for that period

  • Often coloured:

    • Green/blue bar = Volume on up day

    • Red bar = Volume on down day

 

 

How Volume Confirms Price Action

 

Let’s look at how volume helps confirm different technical patterns and signals.

 

 

1. Breakouts and Volume

 

A breakout occurs when price moves above resistance or below support.

 

Strong breakout = High volume
Weak breakout = Low volume (risk of fake-out)

 

High volume confirms conviction.
It means many buyers (or sellers) agree with the move — it’s more likely to last.

 

 

2. Reversals and Volume

 

When price reverses direction, volume can help validate whether it’s a real turning point.

  • A bottom reversal with high volume suggests strong buyer interest.

  • A top reversal with rising volume may signal increasing selling pressure.

 

Watch for volume spikes at major highs and lows — these can indicate a shift in control from buyers to sellers (or vice versa).

 

 

3. Support and Resistance Zones

 

  • When price approaches support or resistance, volume gives clues:

    • Rising volume near resistance = potential breakout

    • Weak volume at support = support might fail

 

Volume helps you gauge whether buyers or sellers are winning at key levels.

 

 

4. Trend Strength

 

In strong trends:

  • Volume should increase in the direction of the trend

    • Uptrend = Higher volume on green days

    • Downtrend = Higher volume on red days

 

  • If volume starts to fade, it may be a sign the trend is losing steam

 

 

5. Volume and Chart Patterns

 

Volume plays a critical role in validating chart patterns like triangles, flags, or cup and handle:

  • Volume should contract during the pattern

  • Then expand sharply on the breakout
    This shows accumulation, followed by a surge in interest

 

 

Volume Indicators (Quick Overview)

 

You can also use special volume indicators to analyse it more deeply:

  • On-Balance Volume (OBV) – Adds or subtracts volume based on price moves to show buying/selling pressure

  • Volume Moving Average – Helps compare current volume to recent averages

  • Volume by Price – Shows how much volume occurred at different price levels

 

 

Summary

 

Volume is a vital companion to price — it helps you filter signals, validate breakouts, and assess the strength of market moves.

 

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Stock Market Course