Low Volume Pullback
A low volume pullback is a technical correction that goes to an area of support that lies on volume that is below average.
The low volume is a sign to traders that the trend will continue and that only weak longs may get a quick profit.
If there is a large spike in volume, traders see this as more than normal fluctuations and a sign that the trend will soon reverse. Most traders would then enter a position in a low volume pullback in an attempt to get a profit.
Related Terms Divergence On-Balance Volume - OBV Pullback Volume Weak Longs
-- 0-1 Definitions -- 401 k plan 52 week high low 10 q 10 k wrap 10 k 529 plan 8 k -- A Definitions -- abnormal return above the market absolute return accrual rate absolute breadth index abi accrue across the board accumulation distribution accumulative swing index asi active index fund active investing active management actual total loss actual return adding to a loser adjusted closing price advance decline index advisor advance decline line a d after hours market close after hours trading aht after market performance after the bell aggressive growth fund air pocket stock aggressive investment strategy alan greenspan algorithmic trading all cap fund alpha generator all or none aon alpha american stock exchange amex analyst sponsorship analyst angel investor annual percentage rate apr annual percentage yield apy annual report annual return anonymous trading arbitrage aroon indicator aroon oscillator ascending channel ascending tops ascending triangle ask size ask assessable stock at the close order at the market at the opening order auction market automated forex trading automatic investment plan aip automatic reinvestment plan authorized stock average annual yield average cost basis method average cost method average directional index adx average down average price average return average selling price asp average up away from the market ax -- B Definitions -- bag holder bar chart bar barometer stock barometer bear market bear raid basic materials sector bear trap bear bearish belt hold bearish engulfing pattern bearish harami beating the gun bellwether below the market benchmark best ask best bid bid ask spread bid size bid tick bid bid whacker big board black friday black market block order block trade block blotter blow off top blowoff boiler room bollinger band boon bottom fisher bottom line box top order bracketed buy order bracketed sell order breadth indicator breadth of market theory breakaway gap breakout breakout trader bubble bull market bull bullish belt hold bullish engulfing pattern bullish harami bullish homing pigeon buy a bounce buy and hold buy stops above buy the dips buy to cover buy weakness buy buyback -- C Definitions -- canceled order cancellation cash account candlestick cancel former order cfo cash flow financing cash position cash dividend certificated stock cash trading chaikin oscillator chande momentum oscillator change chartist chasing the market chikou span choppy market circular trading class a shares class b shares class of shares classified shares close clearing close position closed market transaction closing bell closing price closing tick closing cold calling comex commission commodity channel index cci common gap common shareholder common stock competitive advantage composite index composite comps conditional order confirmation on a chart confirmation consolidation conversion price correction count cover on a bounce cover on approach cover coverage initiated covered call covered warrant cramer bounce crash cross holding crossed market crossover investor crossover crush spread cult stock cumulative dividend cumulative preferred stock cumulative volume index cvi current income cup and handle current yield cyber monday -- D Definitions -- darvas box theory daily trading limit daily chart day around order dark cloud cover day order day trader days to cover dead cat bounce death cross declaration date decline demarker indicator defensive buy delisting depth descending tops dialing and smiling descending triangle diamond top formation directional movement index dmi displaced moving average disparity index divergence dividend frequency dividend payout ratio dividend per share dps dividend policy dividend rate dividend recapitalization dividend reinvestment plan drip dividend rollover plan dividend tax credit dividend yield dividend do not increase dni dogs of the dow doji dollar roll donchian channels double bottom double top double up dow divisor dow jones 65 composite average dow jones industrial average djia yield dow jones industrial average djia dow jones sustainability north america index dow jones sustainability united states index dow jones transportation average djta dow jones utility average djua dow theory downgrade down volume downswing downtick volume downtick downtrend drill bit stock drop dynamic momentum index -- E Definitions -- earning assets earnings before tax ebt earnings estimate earnings momentum earnings multiplier earnings surprise earnings yield earnings per share eps earnings season ease of movement effective date elder ray index economic calendar elliott wave theory envelope evening star ex date event risk ex rights ex dividend ex warrant excess returns exchange excess spread executing broker exercise exhaustion gap exit strategy exponential moving average ema expected return extended trading extra dividend -- F Definitions -- fast market falling knife fibonacci channel fibonacci clusters failed break fibonacci arc fair funds for investors fibonacci extensions fibonacci fan fibonacci retracement fibonacci time zones fibonacci numbers lines fighting the tape fill or kill fok fill filter rule filter financial blog fire sale firm order firm quote fiscal year end fiscal year fy flipper forecasting float formula investing fortune 500 forward price to earnings forward p e found money free cash flow to equity fcfe friendly hands full disclosure fully diluted shares -- G Definitions -- gazelle company gann angles gather in the stops gap gartley pattern going public golden cross great depression greenmail gross earnings gross margin return on investment gmroi growth company growth fund growth stock -- H Definitions -- handle hammering hanging man harami cross hard stop harvard mba indicator haurlan index hammer head and shoulders pattern heikin ashi technique held order high beta index high close high flier histogram hold hit the bid hook reversal hot ipo hot money house call -- I Definitions -- imbalance of orders ichimoku kinko hyo impact day illiquid immediate or cancel order ioc impulse wave pattern in play income stock in the pink index indicator initial offering date inside day inside market inside quote insider information insider trading insider intraday intraday intensity index inverse head and shoulders inverse saucer issue island reversal issued shares issuer -- J Definitions -- january effect january barometer jim cramer -- K Definitions -- key performance indicators kpi keltner channel klinger oscillator kijun sen kicker pattern korean composite stock price indexes kospi -- L Definitions -- let your profits run large cap big cap level 2 last sale reporting level 1 limit on close order level 3 limit on open order limit order line chart linearly weighted moving average linear price scale listed security liquidating dividend liquid market listing requirements little board lock in profits loan shark locked market logarithmic price scale long or long position long put long squeeze long term capital gain or loss lot low volume pullback -- M Definitions -- margin call margin account margin manipulation macro hedge market arbitrage market breadth market depth market capitalization market if touched mit market indicators market is off market maker spread market is up market jitters market maven market on close moc market order market perform market price market risk premium market sentiment market share market technicians association mta market timing market versus quote mvq market with protection order marquee asset mcclellan oscillator marubozo mcclellan summation index mean return mechanical investing mega cap mergers and acquisitions m a member short sales ratio micro cap micro hedge mid cap mid value stock minimum margin minus tick mixed lot modified dietz method momentum investing momentum momo play monday effect money flow index mfi money flow money laundering morning star mosaic theory most active moving average chart moving average convergence divergence macd moving average ma moving average ribbon -- N Definitions -- naked position naked put naked shorting nano cap narrow based weighted average nasdaq 100 after hours indicator nasdaq composite index nasdaq national market securities nasdaq nm nasdaq 100 index narrow moat nasdaq national best bid and offer nbbo national stock exchange of india limited nse national association of securities dealers nasd negative directional indicator di negative volume index nvi net change net debt per capita net interest margin securities nims net investment net long net margin net net net short net revenue pledge net volume new york stock exchange nyse nikkei noise trader non assessable stock non marginable securities non operating asset non qualified stock option nso normal market size not held order nyse composite index -- O Definitions -- ohlc chart october effect obamanomics offering price offshore on balance volume obv one night stand investment one cancel all order on stream one way market online trading option class open option opening price oracle of omaha order book official order splitting ostrich outperform outside reversal outstanding shares over the counter bulletin board otcbb over the counter exchange of india otcei over the counter market over the counter otc overbought overnight delivery risk overreaction oversold overtrading overvalued -- P Definitions -- p value panic selling painting the tape pairs trade panic buying parabolic indicator paper millionaire paper profit paper loss pari passu parity price pattern day trader pattern payment date penny stock percentage price oscillator ppo personal finance peter lynch phantom gain piercing pattern pig pink sheets pivot point poop and scoop pivot portfolio management portfolio manager position trader position portfolio positive volume index pvi post trade processing pre ipo placement pre market preferred stock previous close price action price by volume chart pbv price channel price continuity price creep price earnings ratio p e ratio price rate of change roc price transparency primary market print private investment fund profit and loss statement p l profit loss ratio profit margin profit taking profit program trading promoter public book of orders public company public offering price pop public offering pullback pump and dump push on a string put bond put call parity put call ratio put option put ratio backspread put warrant put puttable common stock pyg pyramid scheme pyramiding pyrrhic victory -- Q Definitions -- quarterly earnings report qstick indicator quadrix qualified dividend qualified distribution quotation quote -- R Definitions -- rate of change range rate of return rally random walk theory ratings service real time trade reporting real rate of return real time realized gain realized yield realized loss reallowance recognized gain recognized loss record date record low record high rectangle red candlestick red chip registered investment advisor ria regular way trade rw registered security reinvestment relative return relative strength index rsi relative strength relative vigor index rvi renko chart resistance resistance level restricted stock retracement return on capital gains return on investment roi return reversal reverse stock split rising bottom risk adjusted return risk arbitrage risk capital risk rogue trader roth 401 k roth ira conversion roth ira round trip trading rounding bottom rounding top rule 10b 18 rule 10b 5 rule 144 rule 144a rule 147 rule 72 t rule of 18 rule of 72 runaway gap rule of 78 russell 1000 index russell 2000 index russell 2500 index russell 3000 index russell 3000 value index russell microcap index russell midcap index russell small cap completeness index russell top 200 index russell top 50 index -- S Definitions -- sanku three gaps pattern s 8 filing saucer s 3 filing scalpers schedule 13d scalping schedule a schedule d schedule 13g second mortgage secondary liquidity secondary market secondary mortgage market secondary offering secondary stock sector analysis sector breakdown sector securities and exchange commission sec securities exchange act of 1934 securities fraud security analyst security sell off sell seller sentiment indicator settlement date selling into strength shadow share repurchase share turnover shareholder shares sharpe ratio shooting star short and distort short covering short interest ratio short interest short market value short or short position short sale rule short sale short selling short squeeze short term gain sideways market sideways trend signal line simple moving average sma small cap soft market speculative stock speed resistance lines spike spread split adjusted standard poor s 500 index s p 500 standard poor s s p star startup stochastic modeling stochrsi stochastic oscillator stock basher stock certificate stock dividend stock market crash of 1929 stock market crash of 1987 stock market stock pick stock quote stock split stock screener stock symbol stock watcher stock stockbroker stop limit order stop loss order stop order stop payment stopped order stopped out strong buy strong sell structural change stuckholder subscribed sucker rally supermontage support support level sushi roll suspended trading swing trading symmetrical triangle -- T Definitions -- tech bubble tape shredding technical analysis tech street technical correction technically strong market technical rally technical indicator technically weak market technology sector tenbagger thin market third market maker terotechnology theta third market three black crows three white soldiers tick test rules tick ticker symbol ticker tape time of day order tick index time weighted rate of return today s high today s low top down investing top line torpedo stock toronto stock exchange tsx total debt service ratio tds total debt to total assets total return index total return touchline total stock fund tracker fund trade finance tracking stock trade deficit trade or fade rule trade price response trade reporting and compliance engine trace trade resumption trade sanction trade surplus trade volume index tvi trade through trade trader trading account trading arcade trading ahead trading authorization trading below cash trading book trading channel trading desk trading curb trading dollars trading effect trading floor trading halt trading range trading session traditional ira trailing eps trailing price to earnings trailing p e trailing stop transaction transaction costs trend analysis trend trading trend trendline treynor black model treynor ratio triangle trigger line triple bottom triple top triple witching true strength index tsi tsx venture exchange turnover ratio turtle channel two dollar broker two sided market two way quote -- U Definitions -- u s dollar index usdx ultimate oscillator ulcer index ui u s treasury u s savings bonds ultra etf unchanged ultra short bond fund underpricing undervalued unissued stock unlisted security unpaid dividend unlisted trading privileges unquoted public company unrealized gain unrealized loss unseasoned security unsubscribed unsuitable unsuitability unsystematic risk unweighted index up and in option up and out option up market capture ratio up volume upside downside ratio upside uptick rule upstairs trade uptick volume uptick uptrend utilities sector -- V Definitions -- value at risk var value averaging valuation analysis valuation value based pricing value chain value fund value date value investing value line index value proposition value stock value trap vega velocity of money venture capital funds venture capital venture capitalist vertical equity vertical analysis vertical market vertical spread vix cboe volatility index vesting vix option volatility quote trading volatility volume of trade volume weighted average price vwap volume price trend indicator vpt volume volumetric production payment vpp voluntary accumulation plan vulture fund vulture capitalist -- W Definitions -- wallflower wall street wallpaper walrasian market wall of worry war bond war chest warehouse receipt warehouse lending war babies warehousing warrant coverage warrant warrant premium warren buffett warsaw stock exchange wse wash out round wash sale rule wash trading wash sale wash watch list water etf watered stock wave weak dollar weak hands weak shorts weak longs weak form efficiency weak sister wealth added index wai wealth wealth management wedge weekend effect weekly chart weighted weighted alpha whipsaw white candlestick white elephant wide open widow and orphan stock win loss ratio williams r witching hour wolfe wave workout assumption work in progress wip workout market world federation of stock exchanges world fund world trade organization wto worthless securities write out write off write up writer -- X Definitions -- xw xdis xd xrt xetra -- Y Definitions -- year end bonus y share yard y yankee market year over year yoy year to date ytd yellow sheets yellow knight yen etf yield basis yield tilt index fund yo yo -- Z Definitions -- zacks lifecycle indexes z score zar south african rand z share zero capital gains rate zero plus tick zmk zambian kwacha zig zag indicator zombie debt zombies zone of possible agreement zoning zzzz best zero minus tick