Price Volume Distribution


Price Volume Distribution uses horizontal bars to display the amount of volume for different price ranges. The distribution uses all of the data displayed on the chart. For example, if six months of data is visible on the chart, the price and volume for the six months displayed is used in the calculation. The calculation does not use any historical or future data that is not displayed.

Chart 1: Price Volume Distribution
  • Price ranges with heavier volume indicate more interest at those price levels. Longer horizontal bars should be monitored for possible future support/resistance
Chart 2: Price Volume Distribution
Chart 3: Price Volume Distribution
  • Price breaking above a heavy volume bar indicates strength because there was enough demand to break through resistance (overcome supply)
  • Price breaking below a heavy volume bar indicates weakness because there was not enough demand to overcome supply

If the closing price of a bar is within the price range of a histogram, add the volume associated with the bar to that histogram.

Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach to analyzing stocks. When considering which stocks to buy or sell, you should use the approach that you're most comfortable with. As with all your investments, you must make your own determination as to whether an investment in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results.