Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Uptick Volume

What it is:

Uptick volume is the number of shares of a particular stock that trades when the price is increasing.

How it works (Example):

Let's assume that in the last hour, Company XYZ stock increased from $15 to $17 per share for 30 minutes. During that time, investors bought 2 million shares of the company. This is the uptick volume.

Now let's say that for the other half hour, the price of Company XYZ stock fell from $17 to $14. During that time, investors sold 3 million shares (this is the downtick volume).

In finance, net volume refers to the difference between a security's uptick volume and its downtick volume. In our case, the net volume would be 3 million - 2 million = 1 million shares.

Why it Matters:

Uptick volume is a measure of momentum and is a frequent component of various technical trading strategies. Generally, however, when uptick volume is bigger than downtick volume, the implication is that the demand for the shares is rising and the stock is hot. When downtick volume outweighs uptick volume, the implication is that the stock is on a downward trend.

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...