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Validation

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

Definition

Agreement between volume and price action, confirming that the move is genuine and supported by institutional participation.

Validation in plain English

Volume is how many shares actually changed hands, and price is where they changed hands — Validation just means the two agree. If the price makes a strong move AND lots of volume comes with it, that's your confirmation the move is real and backed by big institutional money, not just a few small traders nudging things around. It's like a rumor at school: if only one person is whispering it, ignore it, but if the whole hallway is buzzing, something genuine is happening.

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