Price-volume relationship

Price-volume relationship

A relationship espoused by some technical analysts that signals continuing rises or falls in security prices that are related to changes in volume traded.

Price-Volume Relationship

In technical analysis, a theory stating that changes in a security's trading volume affect the security's price. For example, in a time of low volume, a large order to buy or sell the security can cause a drastic change in price.
References in periodicals archive ?
Jones, Testing for linear and non-linear Granger causality in the stock price-volume relationship, Journal of Finance (49 : 1994)
Using multiple linear regression analysis, Long (2007) presents evidences for the options market that duplicate existing statistics for a price-volume relationship in equity markets.
However, although these above-quoted papers were important in the development of theory and methodology in the analysis of the price-volume relationship, none dealt with that relationship in an international setting or in a situation in which the influence of a significant share of a market's volume had been considered.
An Empirical Analysis of the Stock Price-Volume Relationship. Journal of Banking and Finance, 12, 31-41.
To the extent that the object of this line of research is to uncover the generating mechanism governing the price-volume relationship, aggregation in this context can only obscure the underlying mechanism which governs the relationship between [absolute value of [Delta]P] and V.
107) put the point more succinctly: "Using daily data still leaves the price-volume relationship exposed to the weakening influence of the fact that, between open and close, the market could move violently up and down in response to heavy volume while, over the day as a whole, recording a fairly small overall change to match the heavy volume."
Two hypotheses attempt to account for the existence of the price-volume relationship. The "mixture of distributions" hypothesis suggests that a price-volume relationship exists due to a dependence, by both volume and price, on some common directing event or variable (Clarke, 1973).
Full browser ?