One of the most crucial elements of technical analysis for any trader is volume. It tells you the enthusiasm behind a price movement, indicating how many shares or contracts of a particular security have been traded over a specific period. A strong price move on high volume is generally more significant than the same move on low volume. If you're a Webull user, understanding how to effectively check and interpret volume is key to making informed trading decisions.
Ready to dive in and empower your trading with volume analysis on Webull? Let's get started!
Step 1: Launch the Webull App and Select Your Asset
First things first, open your Webull app! (Or log in to the desktop or web platform). We're going to navigate to a specific stock or asset to begin our volume exploration.
Are you looking at your watchlist, or do you have a specific ticker in mind? Either way, find the asset you want to analyze. For this guide, let's assume you've already identified a stock you're interested in.
Tap on the stock's ticker symbol to open its detailed quote page. This page is your command center for all things related to that specific security.
Step 2: Accessing the Chart and Volume Indicator
Once you're on the detailed quote page, you'll see a wealth of information, including price, market data, news, and of course, the chart.
Sub-heading 2.1: Locating the Chart
On the stock's detail page, you'll immediately see the interactive price chart. This is where the magic happens for technical analysis. It usually occupies the most prominent section of the screen.
If you're on mobile, you might need to scroll down slightly to see the full chart view, or rotate your phone to landscape mode for a larger display.
Sub-heading 2.2: Identifying the Standard Volume Bars
By default, Webull charts typically display a volume indicator at the bottom of the price chart. This is usually presented as a series of vertical bars.
Each bar represents the total trading volume for the corresponding time period on the price chart. For example, if your chart is set to a "Daily" timeframe, each volume bar will show the total volume for that specific trading day.
Green volume bars usually indicate that the closing price for that period was higher than the opening price, while red volume bars signify that the closing price was lower than the opening price. This color-coding helps you quickly gauge buying (green) vs. selling (red) pressure.
Step 3: Customizing Your Volume Display (Advanced Charting)
Webull offers robust charting tools, allowing you to customize your view and add more advanced volume indicators.
Sub-heading 3.1: Entering Advanced Charting Mode
To unlock more customization options, look for an "Advanced Chart" or "Full Screen Chart" icon, often represented by an arrow pointing diagonally outwards or a small icon resembling a chart with additional settings.
Tapping this will expand the chart to a full-screen view, giving you more real estate and access to a wider range of technical indicators.
Sub-heading 3.2: Adding and Configuring Volume Indicators
Within the advanced chart, you'll find an "Indicators" or "Fx" button (often denoted by a small "f" with an "x" subscript). Tap on this.
A list of available technical indicators will appear. Scroll through or search for volume-related indicators.
Standard Volume: This is usually pre-selected, but you can adjust its settings.
Volume Profile: This is a powerful indicator that shows the volume traded at each specific price level over a selected period, rather than just per time interval. Webull supports various Volume Profile types (Auto Anchored, Fixed Range, Periodic, Session, Visible Range). To add it, simply select it from the indicator list.
On-Balance Volume (OBV): This indicator measures buying and selling pressure as a cumulative total, adding volume on "up" days and subtracting it on "down" days. It's excellent for confirming price trends or spotting divergences.
Money Flow Index (MFI): Similar to RSI but incorporates volume, showing the strength of money flowing into or out of a security.
Once you select an indicator, you can often tap on its name again (or a gear icon next to it) to adjust its parameters, such as the period for a moving average volume or the percentage for a Value Area in Volume Profile. Experiment with these settings to find what works best for your analysis.
Step 4: Interpreting Volume Data
Now that you can see the volume, understanding what it means is critical. Volume is not just a number; it's a narrative.
Sub-heading 4.1: Volume and Price Confirmation
High Volume on a Price Breakout: When a stock's price breaks above a resistance level or below a support level with significantly higher than average volume, it suggests a strong, confirmed move. This indicates that many traders are participating and believe in the new direction.
Low Volume on a Price Reversal: If a stock reverses direction (e.g., an uptrend turns into a downtrend) on low volume, it could be a warning sign. It suggests that the reversal might not be sustainable and could be a temporary fluctuation rather than a true change in trend.
Increasing Volume with an Uptrend: This is a bullish signal, indicating strong buying interest and continuation of the upward momentum.
Increasing Volume with a Downtrend: This is a bearish signal, indicating strong selling pressure and likely continuation of the downward momentum.
Sub-heading 4.2: Divergences and Exhaustion
Price Rises, Volume Declines: This is a bearish divergence. It suggests that the upward price movement is losing conviction among traders. While the price might still be going up, fewer participants are backing it, potentially signaling an impending reversal or slowdown.
Price Falls, Volume Declines: This is a bullish divergence. It indicates that the downward price movement is losing momentum as sellers become less aggressive. A reversal to the upside might be around the corner.
Volume Spikes (Climax Volume): A sudden, dramatic spike in volume, often accompanied by a large price movement, can signal either an exhaustion move (the last gasp of a trend before a reversal) or a significant news event driving extreme interest. It's crucial to look at the context of the price action.
Step 5: Utilizing "Most Active" and "Options Volume" Features
Webull doesn't just show you volume on individual charts; it also aggregates volume data across the market.
Sub-heading 5.1: Finding "Most Active" Stocks
On the main Webull interface (usually under the "Markets" or "Quotes" tab), look for sections like "Most Active" or "Top Actively Traded Stocks."
This section ranks stocks by their daily trading volume, allowing you to quickly identify securities with significant current interest. High volume here often means higher liquidity and potentially more trading opportunities.
Sub-heading 5.2: Checking Options Volume
If you trade options, Webull provides dedicated sections for options volume. Navigate to the "Options" tab or section within the app.
You can often find "Options Total Volume Ranking" or similar lists that show which options contracts (by underlying asset, expiration, and strike price) are experiencing the highest trading volume.
Within the options chain for a specific stock, you'll also see volume data for individual call and put contracts. High options volume can indicate strong interest and potential price moves in the underlying stock.
By diligently following these steps and taking the time to understand the nuances of volume, you'll be well on your way to making more informed and strategic trading decisions on Webull. Remember, volume is a powerful confirmation tool, but it's most effective when used in conjunction with other technical indicators and your overall trading strategy. Happy trading!
Frequently Asked Questions (FAQs) about Checking Volume on Webull
How to find the volume indicator on Webull's mobile app?
The standard volume indicator is usually displayed by default at the bottom of the price chart on a stock's detailed quote page. If you don't see it, go into the "Advanced Chart" or "Indicators" (Fx) section and ensure "Volume" is selected.
How to interpret green and red volume bars on Webull?
Green volume bars signify that the closing price for that period was higher than its opening price, indicating buying pressure. Red volume bars mean the closing price was lower than the opening price, suggesting selling pressure.
How to add advanced volume indicators like Volume Profile on Webull?
Navigate to a stock's detailed quote page, tap on the chart to enter "Advanced Chart" mode, then look for the "Indicators" (Fx) button. From the list, select "Volume Profile" or other volume-based indicators like OBV or MFI.
How to tell if a stock is highly traded on Webull?
On the main "Markets" or "Quotes" section of Webull, look for categories like "Most Active" or "Top Actively Traded Stocks." These lists rank securities by their daily trading volume, highlighting those with the most interest.
How to check options volume for a specific stock on Webull?
Go to the stock's detailed quote page, then select the "Options" tab. You'll see the options chain, which displays volume for individual call and put contracts. Webull also has an "Options Total Volume Ranking" list in its market data section.
How to use volume to confirm a price breakout on Webull?
A strong price breakout (e.g., above resistance) is confirmed by significantly higher than average volume. This indicates strong participation and conviction in the new price direction.
How to identify volume divergence on Webull charts?
A bearish volume divergence occurs when the price makes higher highs but volume makes lower highs, suggesting diminishing buying interest. A bullish volume divergence occurs when the price makes lower lows but volume makes higher lows, indicating weakening selling pressure.
How to adjust the timeframe for volume display on Webull?
On the chart, you can change the timeframe (e.g., 1-minute, 5-minute, Daily, Weekly). The volume bars displayed will automatically adjust to show the trading volume for the chosen timeframe.
How to understand the significance of high vs. low volume in trading?
High volume generally signifies strong market interest and conviction behind a price move, while low volume suggests less interest and potentially a weaker or unsustainable move.
How to combine volume analysis with other indicators on Webull?
Volume is best used as a confirmation tool. Combine it with price action, support and resistance levels, and other technical indicators like moving averages, RSI, or MACD to build a more comprehensive trading strategy.