There are only two basic definitions for bullish and bearish volume:

1. Bullish volume is increasing volume on up-moves and decreasing volume on down-moves.

2. Bearish volume is increasing volume on down-moves and decreasing volume on up-moves.
Knowing this is only a start and in many cases, not a great deal of help for trading. You need to know more
than this general observation. You need to look at the price spread and price action in relation to the
volume. Most technical analysis tools tend to look at an area of a chart rather than a trading point. That is,
averaging techniques are used to smooth what is seen as noisy data. The net effect of smoothing is to
diminish the importance of variation in the data flow and to hide the true relationship between volume and
the price action, rather than highlighting it!
By using the TradeGuider software, volume activity is automatically calculated and displayed on a separate
indicator called the Volume Thermometer. The accuracy of this leaves you in no doubt that bullish
volume is expanding volume on up-bars and decreasing volume on down-bars.
The market is an on-going story, unfolding bar by bar. The art of reading the market is to take an overall
view, not to concentrate on individual bars. For example, once a market has finished distributing, the
smart money will want to trap you into thinking that the market is going up. So, near the end of a
distribution phase you may, but not always, see either an up-thrust (see later) or low volume up-bars. Both
of these observations mean little on their own. However, because there is weakness in the background,
these signs now become very significant signs of weakness, and the perfect place to take a short position.
Any current action that is taking place cannot alter the strength or