Linda Raschke – Volume and Price Relationship

This is a trading lecture/video by Linda Bradford Raschke that explains how volume interacts with price movements to reveal market strength, conviction, and potential reversals. It is part of her broader teaching on market structure, Auction Market Theory, and technical analysis.

Core Idea

• Volume confirms price direction: Strong moves accompanied by high volume are more reliable than those on low volume.
• Volume precedes price: A sudden surge in trading activity often signals that price will follow with a breakout or breakdown.
• Auction Market Theory: Raschke emphasizes that Price + Time + Volume = Value. Markets probe higher to attract sellers and lower to attract buyers, with volume showing where consensus “value” is established.

What You’ll Learn In Volume and Price Relationship

Breakouts and Volume

• A breakout with high volume suggests institutional participation and conviction.
• A breakout with low volume may be a false move or “fake‑out.”

Trend Continuation

• Rising prices with rising volume = strong trend.
• Rising prices with falling volume = weakening trend, possible reversal.

Reversals

• Spikes in volume at support/resistance zones often mark turning points.
• Exhaustion volume (very high volume at the end of a move) can signal trend exhaustion.
• Practical Application

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