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Volume Divergence

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

Definition

A pattern where price makes a new high (or low) but volume does not confirm; classic effort-vs-result anomaly suggesting trend exhaustion.

Volume Divergence in plain English

There's a simple rule of thumb in this subject: big results should take big effort. Volume is the effort, and a new price high or low is the result. Volume Divergence is when the price sets a fresh high (or low) but volume is weak — the price climbed higher on very little effort, which is a warning sign. It's like a runner who claims to be sprinting flat-out but is barely breathing hard; something doesn't add up, and it often means the trend is running out of gas and may soon reverse.

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