KomFi. Academy

Trend Validation

Volume Price Analysis glossary · Validation Vs. Anomaly (Spread & Volume)

Definition

When volume signature confirms the trend (rising volume on impulse, declining volume on pullback in an uptrend) — the trend is genuine.

Trend Validation in plain English

This is the healthy, honest version of a trend. Trend validation is when the volume backs up what the price is doing: in an uptrend, the up-moves (the 'impulse' pushes higher) come on rising volume, and the small dips (pullbacks) come on shrinking volume. That pattern shows real buyers are eagerly driving price up and there's almost no serious selling on the dips — so the trend is genuine and worth trusting. Picture pushing a swing: you shove hard on the way up (lots of effort/volume) and barely touch it as it drifts back — that rhythm tells you the momentum is real.

Learn these first

Sign up free: all 101 Volume Price Analysis terms as flashcards, plus practice questions with full explanations →

Related Volume Price Analysis terms

Volume Price Analysis practice questions · Volume Price Analysis flashcards · Volume Price Analysis study guide