Module 2 Technical Analysis

Chapter 12



Volume plays a very integral role in technical analysis as it helps us to confirm trends and patterns. Consider volumes as means to gain insights into how other participants perceive the market.


Volumes indicate how many shares are bought and sold over a given period of time. The more active the share, higher would be its volume. For example, you decide to buy 100 shares of Amara Raja Batteries at 485, and I decide to sell 100 shares of Amara Raja Batteries at 485. There is a price and quantity match, which results in a trade. You and I together have created a volume of 100 shares. Many people tend to assume volume count as 200 (100 buy + 100 sell) which is not the right way to look at volumes.

The following fictional example should help you understand how volumes add up on a typical trading day:

Sl No Time Buy Quantity Sell Quantity Price Volume Cumulative Volume
01 9:30 AM 400 400 62.20 400 400
02 10.30 AM 500 500 62.75 500 900
03 11:30 AM 350 350 63.10 350 1,250
04 12:30 PM 150 150 63.50 150 1,400
05 1:30 PM 625 625 63.75 625 2,025
06 2:30 PM 475 475 64.20 475 2,500
07 3:30 PM 800 800 64.50 800 3,300

At 9:30 AM there were 400 shares exchanged at the price of 62.20. An hour later, 500 shares were traded at 62.75. So at 10:30 AM if you were to check the total volume for the day, it would be 900 (400 + 500). Likewise 350 shares at 63.10 were traded at 11:30 AM, and upto 11:30 AM, the volume was 1,250 (400+500+350). So on, and so forth.

Here is a screen shot from the live market highlighting the volumes for some of the shares. The screen shot was taken around 2:55 PM on 5th of August 2014.


If you notice, the volume on Cummins India Limited is 12,72,737 shares, likewise the volume on Naukri (Info Edge India Limited) is 85,427 shares.

The volume information that you see here is the cumulative volume. Meaning, at 2:55 PM, a total of 12,72,737 shares of Cummins were traded at various price points ranging from 634.90 (low) and 689.85 (high).

With 35 minutes left for the markets to close, it is only logical to expect the volumes to increase (of course assuming traders continue to trade the stock for the rest of the day). In fact here is another screen shot taken at 3:30 PM for the same set of stocks with volume highlighted.


As you can see, the volume for Cummins India Limited has increased from 12,72,737 to 13,49,736. Therefore, for Cummins India the volume for the day is 13,49,736 shares. The volume for Naukri has increased from 85,427 to 86,712, making 86,712 shares as the volume for the day. It is important for you to note that the volumes shown here are cumulative.

12.1 – The volume trend table

Volume information on its own is quite useless. For example, we know that the volumes on Cummins India is 13,49,736 shares. So how useful is this information when read in isolation? If you think about it, it has no merit and hence would actually mean nothing. However when you associate today’s volume information with the preceding price and volume trend, then volume information becomes lot more meaningful.

In the table below you will find a summary of how to use volume information:

Sl No Price Volume What is the expectation?
01 Increases Increases Bullish
02 Increases Decreases Caution – weak hands buying
03 Decreases Increases Bearish
04 Decreases Decreases Caution – weak hands selling

The first line in the table above says, when the price increases along with an increase in volume, the expectation is bullish.

Before we understand the table above in detail, think about this – we are talking about an ‘increase in volume’. What does this actually mean? What is the reference point?  Should it be an increase over the previous day’s volume number or the previous week’s aggregate volume?

As a practice, traders usually compare today’s volume over the average of the last 10 days volume. Generally the rule of thumb is as follows:

High Volume = Today’s volume > last 10 days average volume
Low Volume = Today’s volume < last 10 days average volume
Average Volume = Today’s volume = last 10 days average volume

To get the last 10 day average, all you need to do is draw a moving average line on the volume bars and the job is done. Of course, we will discuss moving averages in the next chapter.


In the chart above, you can see that volumes are represented by blue bars (at the bottom of the chart). The red line overlaid on the volume bars indicates the 10 day average. As you notice, all the volume bars that are over and above the 10 day average can be considered as increased volume where some institutional activity (or large participation) has taken place.

Keeping this in perspective, I would suggest you now look at the volume – price table.

12.2 – Thought process behind the volume trend table

When institutional investors buy or sell they obviously do not transact in small chunks. For example, think about LIC of India, they are one of the biggest domestic institutional investors in India. If they would buy shares of Cummins India, would you think they would buy 500 shares? Obviously not, they would probably buy 500,000 shares or even more. Now, if they were to buy 500,000 shares from the open market, it will start reflecting in volumes. Besides, because they are buying a large chunk of shares, the share price also tends to go up. Usually institutional money is referred to as the “smart money”. It is perceived that ‘smart money’ always makes wiser moves in the market compared to retail traders. Hence following the smart money seems like a wise idea.

If both the price and the volume are increasing this only means one thing – a big player is showing interest in the stock. Going by the assumption that smart money always makes smart choices the expectation turns bullish and hence one should look at buying opportunity in the stock.

Or as a corollary, whenever you decide to buy, ensure that the volumes are substantial. This means that you are buying along with the smart money.

This is exactly what the 1st row in the volume trend table indicates – expectation turns bullish when both the price and volume increases.

What do you think happens when the price increases but the volume decreases as indicated in the 2nd row?

Think about it on the following terms:

  1. Why is the price increasing?
    1. Because market participants are buying
  2. Are there any institutional buyers associated with the price increase?
    1. Not likely
  3. How would you know that there are no meaningful purchase by institutional investors
    1. Simple, if they were buying then the volumes would have increased and not decrease
  4. So what does an increase in price, associated by decreasing volumes indicate?
    1. It means the price is increasing because of a small retail participation and not really influential buying. Hence you need to be cautious as this could be a possible bull trap

Going forward, the 3rd row says, a decrease in price along with an increase in volume sets a bearish expectation. Why do you think so?

A decrease in price indicates that market participants are selling the stock. Increase in volumes indicates the presence of smart money. Both events occurring together (decrease in price + increase in volumes) should imply that smart money is selling stocks. Going by the assumption that the smart money always makes smart choices, the expectation is bearish and hence one should look at selling opportunity in the stock.

Or as a corollary, whenever you decide to sell, ensure that the volumes are good. This means that you too are selling, along with the smart money.

Moving forward, what do you think happens when both volume and price decrease as indicated in the 4th row?

Think about it in on following terms:

  1. Why is the price decreasing?
    1. Because market participants are selling.
  2. Are there any institutional sellers associated with the price decrease?
    1. Not likely
  3. How would you know that there are no meaningful sell orders by institutional investors
    1. Simple, if they were selling then the volume would increase and not decrease
  4. So how would you infer a decline in price and a decline in volume?
    1. It means the price is decreasing because of small retail participation, and not really influential (read as smart money) selling. Hence you need to be cautions as this could be a possible bear trap.

12.3 – Revisiting the checklist

Let us revisit the checklist and revaluate from the volumes perspective. Imagine this hypothetical technical situation in a stock:

  1. Occurrence of a bullish engulfing pattern – this suggests a long trade for reasons discussed previously
  2. A support level around the low of bullish engulfing – support indicates demand. Therefore the occurrence of a bullish engulfing pattern near the support area suggests there is indeed a strong demand for the stock and hence the trader can look at buying the stock.
    1. With a recognizable candlestick pattern and support near the stoploss, the trader gets a double confirmation to go long

Now along with support near the low, imagine high volumes on the 2nd day of the bullish engulfing pattern i.e on P2 (blue candle). What can you infer from this?

The inference is quite clear – high volumes plus increase in price confirms to us that large influential market participants are positioning themselves to buy the stock.

With all three independent variables i.e candlesticks, S&R, and volumes suggest to take the same action i.e to go long. If you realize this is a triple confirmation!

The point that I want to drive across is the fact that volumes are very powerful as it helps the trader in confirming a trade. For this reason it is an important factor and therefore must be included in the checklist.

Here is how the updated checklist now stands:

  1. The stock should form a recognizable candlestick pattern
  2. S&R should confirm the trade. The stoploss price should be around S&R
    1. For a long trade, the low of the pattern should be around the support
    2. For a short trade, the high of the pattern should be around the resistance
  3. Volumes should confirm to the trade
    1. Presence of above average volumes on both buy and sell day
    2. Low volumes are not encouraging and hence do feel free to hesitate taking a trade where the volumes are low

Key takeaways from the chapter

  1. Volumes are used to confirm a trend
  2. 100 share buy and 100 shares sell makes the total volume 100, not 200
  3. The end of day volumes indicates the cumulative volume across trades executed throughout the day
  4. High volumes indicates the presence of smart money
  5. Low volumes indicate retail participation
  6. When you initiate a trade to either go long or short always make sure if volumes confirm
  7. Avoid trading on low volume days


  1. HAWWA says:

    Today(7th nov) in bharti airtel intraday chart, there was a heavy increase in stock with no volume. So ,this indicates that 2nd row. In these cases, should we short the stock at closing or to wait for a confimation till next day opening?

    • Karthik Rangappa says:

      It suggests you exercise caution 🙂

      • ashwindahale says:

        Is there any website which gives volume ‘& price screen in live markets??

      • ZQ0852 says:

        Dear sir,
        I have few doubts in my mind regarding volume chapter…
        1. While drawing average line on volume bar, we should draw a SMA OR EMA??
        2. Secondly, sir can we use the same concept of average volume during intraday trading??

        Looking for your guidance…..

      • ZQ0852 says:

        Dear sir,
        I want to clear my doubt that “What it means when volume very high but no significant change in price?”
        Like in todays infosys intraday chart, there was sudden increase in volume, but there were no significant change in price, how one should look at this side of volume i.e. “increase in volume, but no change in price”


        • Karthik Rangappa says:

          This could probably occur due to a block deal.

          • Surbhi says:

            Hi Kartik,
            Yesterday there was a block deal in NCC LTD of 11,87,000 qty at 86.10 Rs but in NSE yesterday’s i.e 28 Aug total volume for EQ is showing as 10,50,660 and as BL it is showing as 11,87,000 should total volume be regarded as 1187000+1050660

          • Karthik Rangappa says:

            If I’m not wrong block deals are off market transactions. Does not get accounted for in regular market volumes.

      • Vivek singh says:

        In in kite platform inside market depth.. There is showing bid and offers… If in any stock bids quantity is increasing.. Say its double the offer quantitie… Inspite of this stock price is not going upfront.. Rather going down… Why sir… Does demand and supply theory doesn’t work in stock market….. Price of stock should go up Na… If bid quantity is greater… Plzz reply sir… This is a heavy confusion

  2. kashish shambhwani says:

    10 days MA on volume..SMA or EMA?

  3. Radhakrishnan says:


  4. DA2301 says:

    Sometimes in intraday chart it is noticed that there is a sudden increase of volume (for a range of 30 mins or more) but the price moves sidewise with sort candles. Does it signify anything, like a possible breakout in any direction?

  5. Anil Ghagrum says:

    Dear Sir
    How to spot smart money on chart pattern?

  6. Anil Ghagrum says:

    Dear Sir
    How to identify institutional investors on chart pattern?

  7. Harshad Salvi says:

    Dear Sir,
    What is the significance of deliverable Qty. to total t

  8. Harshad Salvi says:

    sorry, here is the complete question..
    What is the significance of deliverable qty. to total traded qty. ? can it be of help while analysing price -volume action? or while analysing charts for that matter

    • Karthik Rangappa says:

      Deliverable qty signifies the amount of shares that were traded today with an intention of taking overnight deliver. Where as the traded qty signifies the amount of shares day traded. Higher the % of deliverable quantity, the more bullish the stock is perceived.

      • Harshad Salvi says:

        Dear sir,
        So what should be the ideal percentage range to be considered as good ratio?
        For how long such good ratio should be continued (in no.of days) to sustain the rally?
        And also, how it should be interpreted when there are red candlesticks?

        • Karthik Rangappa says:

          The higher the deliverable quantity, the better it is. I would guess a sustained (for at least 5 trading session) deliverable qty of over 60% should be considered good. If it is a red candle and the deliverable qty is increasing it only means investors are buying the decline.

          • DJ9425 says:

            Dear Karthik sir, first of all sorry to write in Harshad’s comment,
            but, how can we find out for delivery base selling ?


          • Karthik Rangappa says:

            Thats absolutely ok, idea is to learn and grow together 🙂

            Well, I guess the delivery based sell volume should be equivalent to the delivery based buy volume.

          • DR1184 says:

            hi Sir ,
            first of all , i am absolutely lovin’ this blog. i m slowly realizing my mistakes in my trades.

            and sorry for this obvious question but ,
            “how can one decide how much %of volume was for delivery and how much was for intraday ?”
            assume volume candle says : 500 shares.
            does it mean…?
            1> 500 shares bought and sold on same day?
            2> say 200 shares were for bought for holding and rest was intraday noise.
            3> 300 were for BTST trade.


          • Karthik Rangappa says:

            Glad to know that 🙂

            It is hard to segregate the volume based on the trading type. However NSE does give out information on the total delivery trades for the day.

          • RS6006 says:

            If it is a red candle and delivery is increasing doesnt it mean more delivery people are selling ?
            Increase in volume + decrease in price -> bearish sentiment ?

          • Karthik Rangappa says:

            Increase in Volume + Decrease in price is considered bearish.

          • ZQ0852 says:

            I did not get your below answer to question “How can we find out for delivery base selling?”
            Please elaborate…

          • Karthik Rangappa says:

            When I buy 10 shares from you, there are 10 shares bought and 10 shares sold. How can one classify this as delivery based selling? It would be difficult right?

  9. jagadeesh says:

    Hi Karthik,
    I am waiting to buy the pullback on low volumes to the 50EMA. But to my surprise, the volumes are kind of messy in the chart which im attaching the screenshot. I cannot make an opinion whether the pullback is on low volumes or not. Please make a comment on this..
    Thanks in advance.. 🙂

    • Karthik Rangappa says: waiting for an event, your eyes are tuned to only see that particular event and you miss the obvious :). 2 things I notice from the chart you have posted..

      1) Starting from left there is a big green candle followed by another green candle. What follows these two candles are 2 red candles with low volumes. This is a typical low volume retracement..which usually happens over 3-5 candles. However in this case it is only 2
      2) The big red candle has high volumes indicating a bearish sentiment…what fallows this is a doji. A big candle followed by a doji is quite powerful. I have explained the rational section 8.4

      So expectations are good but don’t let that blind you to other events unfolding.

      • jagadeesh says:

        crystal clear… 🙂

        • Karthik Rangappa says:

          Following up the low volume retracement – here is the chart of Karnataka Bank. The recent large bullish candle (with large volume) is followed by small red candles with relatively low volumes. I would consider this as a good example of low volume retarcement. Makes a good case for an options trade.

          • andrewman says:

            Got a doubt. You mean to say since there are red candles with low volumes after a big green candle, it is just a retracement?

          • Karthik Rangappa says:

            Low vols and low prices just indicates weak hands getting out, in the backdrop of a run up, this could be a retracement.

          • ZQ0852 says:

            What do you mean by “volume retracement”?

          • Karthik Rangappa says:

            Price retracement based on lower volumes.

          • Srinathjayanna says:

            Sir because of low volume retracement we should go long here with an options trade is this what suggested here am I right.And can we consider there is also a flag formation those who missed the rally they can enter here is this right.

          • Karthik Rangappa says:

            Yes, that is right. You can certainly take the options route here.

  10. kay kay says:

    hi sir,
    how can i draw a moving average line on volume bar in ZT

  11. rm says:

    Please include material on Market Profile. Thanks!

  12. kieron says:

    High volume =Today’s volume > last 10 days average volume
    But sir my question is today’s which volume when market start that volume (I.e after 20 min)
    Or at the end of the day volume

    • Karthik Rangappa says:

      It depends. If you are looking at Intraday 5 mins chart then ‘Volume now > average of last 10 candles, then consider it as good volumes. Likewise if you are looking at EOD then today’s volume > last 10 days volume then consider it as a good volumes.

      • Nishant says:

        HI Karthik,

        You mention the following with respect to intraday : ” If you are looking at Intraday 5 mins chart then ‘Volume now > average of last 10 candles, then consider it as good volumes. ”

        My question is : Is it possible to plot the average of last 10 candles over the volume chart in Kite? I see that you have shown it for plotting the average of last 10 days.

  13. Vasanth says:

    Can i confirm the trade decision by cross checking the TBQ & TSQ in snap quote? If my decision is short sell, can i take the short sell position after confirming the TSQ is double as compare to TBQ? Whether TBQ & TSQ values are giving any confirmations?

    • Karthik Rangappa says:

      I’m not sure if one can depend on this information. For example you may observe TSQ to be double than that of TSQ, but what if TBQ is representing a disclosed qty? Then clearly the information is misleading.

  14. Kumar Vikash says:

    Hi, Which indicator in Pi represents the n-day moving average of volume? I can see EMA which is for price but confused which one to apply to draw a moving average on volume.

  15. Umesh says:

    Hi Sir , thanks for good tutorial
    I have read somewhere that in U.S.A. if we buy or sell in accordance to the volumes , then this is a crime and there is also some legal penalty for this. Why is it so? Is this also true for our country,India?

    • Karthik Rangappa says:

      I dont think this is true. US has pretty strict rules when it comes to day trading. The last I knew there was a minimum deposit of $25K to be eligible to day trade. Dont know if rules have changed now.

  16. DR1184 says:

    Hi Kartik Sir,
    when we see large bullish candle but not so much increase in volume , can we conclude that ‘disclosed quantity’ is pretty low but actual volume is very high so as to cause sharp rise in price..?

    • Karthik Rangappa says:

      Nope, large candle with low volumes could probably mean there is no institutional participation, therefore the increase in price is backed by retail volume.

      • Ganesh says:

        So how does it matter anyway even if the increase in price is backed by retail volume? When I go long, all I want is the prices to increase right?
        Does it suggest that the price is going to fall soon or something??

        • Karthik Rangappa says:

          Agree – when you go long all you care is about the price going up. Its just that in case the price is going along with great volumes then the conviction to hold the position longer is higher. Also when you hold the position longer, there is scope to realize higher profits. Hence increase in price along with increase in volume is desirable.

  17. champak says:

    Hi Karthik,

    Thanks for the great work you ppl are doing. I want to know whether day trading done is also done by the smart money (institutional investors) or is it that they do long term investing only.

  18. hari says:

    Sir plz tell me about dos & don’ts of buying penny stocks. Also tell me the character of these penny stocks like kss ltd, Dr datson lab etc.

  19. Afshin Faizi says:

    Dear Karthik,

    How I can draw Moving Average on Volume Bar using PI…

    Thanks and Regards,


    • Karthik Rangappa says:

      Afshin – I would suggest you get in touch with [email protected] regarding Pi.

      • SARAVANA PERUMAL D says:

        It is the way for plot the SMA 10 on volume bar.

        First, you select the SMA (Simple Moving Average) from study. Then, you change the source type (there is available 5 types of source on default chart. That’s called as Open, High, Low, Close and Volume) as volume. Set the value as 10 on the period entry box. Then, the SMA 10 plotted on the candlestick chart only. You must drag and drop the SMA 10 on volume bar.

        Note: Once confirm un-select the cross hair before the drag and drop.


  20. AB says:

    In ZT current days volume bar is always high and next days it is reduced, also volume in data table is reduced, why. It is difficult to ascertain the volume of current day whether it is above or below 10 days avarage,Also how to plot moving avarage of volume in ZT and PI

  21. vikas ahlawat says:

    hello karthik,
    your chapters are very useful, great work,i have a doubt like you said if lic will buy share it will buy alteast 50k ,and like this if someone buy share that much of quantity there should be someone seller of that quantity,so my question is how much max share in a day which can be trade and how much quantity someone can buy from the market,is there is no limit for buying and selling.

  22. Varun Agarwal says:

    I have often noticed extreme high volume in stock but unable to dicipher whether the volume is for purchase of shares OR for sale of shares for me to follow smart money.

    In few cases i see increase in high volume with increase in price and vice versa. Does it mean increase in share price with increase in volume is purchase of shares and decrease in share price with volume is sale ? In few cases the share price has no major movement but bulk volume like 1.5L Or 5L.

    Then how to i foillow smart money ? I mean unless i know whether the volume is for purchase or sale how can i copy it ?

    How long does NSE or BSE or Money Control site take to update bulk volumes on their site ? Is it real time or delayed ?

    • Karthik Rangappa says:

      Remember if I buy 1 share for you (you being the seller), then the volume for that day is 1 and total number of trades is 2. So given this when you see a volume number it represents both buy and sell information. If volume is high then it means the number of buyers and sellers are really high…you further associate this with prices to get a generic view. For example high volume + increasing prices is supposed to indicate bullishness.

      Bulk/Block trades is off market transaction so it does not really impact the prices much. Information is usually real time (maybe 15-20 minutes after the transaction has occurred).

      Anyway, I would suggest you associate the volume + price movement to develop a generic opinion on market sentiment.

      • praneethmendu says:

        What are some indicators of smart money selling or shorting ? can this not lead to a blue candle ??

      • Arun mendiratta says:

        “Bulk /block deal is off market transaction”…Can u plz karthik explain little bit abt dis .Its impact on price,volume ?

        • Karthik Rangappa says:

          Any market transaction which is not routed via the exchanges is called óff market transactions. For example, you can transfer shares from your DP to mine via a DIS slip then it is an off market transaction. Since this is outside of markets, it does not really have an effect on prices.


    I have an issue with confirming whether the stock prices will break S1 ,S2 and S3 on buying side and R1, R2, and R3 on selling side. I mainly depend on pivot points in intraday trade . Recently I got profits of RS. 379 and the very next day I had RS.264 loss. So I am eager to identify my loopholes therefore can you give me a solution by which I can get confirmed whether to buy around S1, S2 and S3 and viceversa. Any numbers calculation can help?

  24. Indranil says:


    Is there any site that helps find stocks with volume higher than there 10 day average volume ?

  25. pavan says:

    Dear Prof. Karthik,
    Attached is the screenshot of of today’s chart. I have used SMA for the last 10 candles and in this I have noticed that 2 of the 10 candles are outliers (marked as 01 and 02 in the volume chart). Is there any way I can eliminate these two outliers for the SMA of the last 10 candles ? Or is there any other alternative/indicator to SMA that factors in the outliers?
    Thank You.

    • Karthik Rangappa says:

      Pavan – I’m not qualified enough to be called a ‘Professor’, so please spare title!

      Btw, why do you want to eliminate the volume bars? These are natural market movements, by eliminating the data points you are influencing the decision making process.

      • pavan says:

        Dear Karthik,
        You remind me of my earlier project finance professor who helped to demystify the subject for me. So the Title. 🙂 . Title or no title, I am in gratitude to you.

        Yes , I understand what you convey. If I had not factored in the volume at 14:10 (marked as 02), then the volume in the last but one candle (14:20) would be above the moving average of the last 10 candles and the volumes criteria would be satisfied to go for a long. But it would be unnaturally distorting the reading of the charts.

        Thank You.

        • Karthik Rangappa says:

          Yes, in fact we need to be doubly sure when cleaning the data points – remember these are natural events in markets, cleaning them would distort the data.

  26. dilip says:

    sir, plese clarify my doubts
    if iam trading in 3rd day, then can i consider 1st day OI and VOLUME, And how to consider? please explain

    • Karthik Rangappa says:

      I’m assuming you are referring to a candlestick pattern where the pattern has been triggered on the 3rd day….in such a case yes, you can consider volumes on 1st and 2nd day.

      How to consider – just look at the average volume or OI and compare it to present day (3rd day) volume and OI and you will have a reference point.

  27. pradeeptv says:

    Hi Folks, Is there any way we can get the snap qoute programatically @ regular intervals. Say every second I would like to fetch the snap qoute automatically via a script or any other code. Is it possible to do this ?

  28. pradeeptv says:

    Ok Karthik. I would be thankful for u, if u can help in this. Basically I am looking for L2 market depth data which is seen in snap quote.

  29. Jogindar says:

    Dear sir,

    All of sudden on a particular price a huge volume traded like 15L on a particular price and total volume of the day is 20L…stock price didnt move much with that huge bid took place, what could it mean…smart money or something else?…even the stock price didn’t move much in next enitire week…kindly if possible plz light on this.

  30. Abhilash says:

    Hi , I am using Kite of Zerodha. How can I draw Moving average on Volume ?

  31. Abhilash says:

    Hi Karthik,

    I have mailed to Zerodha support and I got a call from them. I have explained about the requirement. They told me that Article was about PI Software, not about KITE. They want me to search the same is available on PI software too. I had a look on Pi but I couldn’t find that indicator in Technical Analysis drop down list. Please do have a look on the image.

  32. Abhilash says:

    Sure , I will

  33. Abhilash says:

    Hi Karthik, I have got the MA in Volume indicator. Thanks.

  34. Abhilash says:

    Hi Karthik, I’ve been watching VOLUME Bars with 10D SMA. Let’s assume a Volume BAR opens in Green, but some times at the end of the Volume Bar closing time it suddenly changed in to RED bar and vice versa. We think the Bar is a Green BUY signal but the change happens within 1 or 2 seconds of time.

    Hope all the Buyes becomes Sellers ( or) is it any other precise answers ? , why it is happening like this. Just uploaded an image to clear my question…

    • Karthik Rangappa says:

      Abhilash – the volume bar turns green if the closing price of the stock is higher than the previous day’s closing. However what you need to observe is the ‘volume’ itself. If today’s volume is higher than previous 10 SMA the consider it as good volume and ignore the colour of the volume bar.

  35. Abhilash says:

    Thanks Karthik …

  36. Abhilash says:

    The only thing, just to check the Volume is above 10 SMA and the appropriate Candle patterns/trend @ that time, right ?

  37. Abhilash says:

    Hi , Can you please explain how these difference comes in BUY ans SELL volume.
    BUY : 1,95,750 and SELL : 2,11,805

    • Karthik Rangappa says:

      The information that you see represents the transient markets. At that particular point there were 1,95,750 buyers and 2,11,805 sellers…the next moment it could be different. There is no rule that they need to be equal.

  38. Abhilash says:

    Thanks Karthik. I guess like this, many people placed an order ( Sell / Buy ) that not yet executed. Still that count for Buy side and Sell side. Sorry if it is wrong …

  39. Abhilash says:

    Technical Analysis finished.. Practicing now a days … Going through fundamental Analysis, very easy to understand and simple language too … eagerly waiting for Commodity sessions…… Nice to link with Zerodha ..

  40. Avinash says:

    their is no channel trading concept sir,

  41. RK kumar says:

    With the aid of a chart can we predict the impact of an event that is occurring out of the blue…like court orders,eg.revoking licence of coal and 2g, war break out,act of gods etc…or what could be the precautions undertaken to prevent sudden moves…

    • Karthik Rangappa says:

      With the aid of a chart you can only guess more intelligently. It does not guarantee results, but the probability of you being right increases. Spread positions help in managing your down side risk better.

  42. Shafeeq says:

    Good day Sir,
    I have recently joined Zerodha.
    Would you please explain me the following in regards to Volumes :
    1. What is meant by Up volume & Down Volume in the Kite Platform? &
    2. How to draw a 10 SMA or EMA on Volumes in Kite?
    Thank You.

  43. suresh.ks says:

    which volume we should consider in NIFTY, Nifty future or Nifty Underlying?

  44. Suresh.ks says:

    I want to know about Nifty, Is it UP trend now? if we buy based on TA can we hold the position for few days?

  45. Suresh.ks says:

    Until the volume confirmation even if other check list gives entry should not we take entry?
    few days back Nifty bounced back at 7678 next day previous days hammer’s high also broken but no 10 days average volume confirmation but open interest increased (3%)
    in this case what’s your opinion ?

    • Karthik Rangappa says:

      Volume matters, however if every other condition matches but the volumes dont, then I would be willing to buy half the usual quantity. Higher the volume, higher is the conviction.

  46. suresh.ks says:

    I looked at the news some analysts are saying that at 7900CE and 8000CE fresh writing is going on so Nifty would not go above 8000 by expiry. is this assumption right or wrong?

    • Karthik Rangappa says:

      We are not even half way through to the expiry, hence I would not really believe what this analyst says!

  47. suresh.ks says:

    Volumes are increasing but Open interest is not , even other check lists give entry. In this case should we consider open interest to rise with volume?

    • Karthik Rangappa says:

      Volume represents the number of trades…whereas OI shows the tally of new position creation. Both OI and volume increase indicates extreme market activity.

      • Arun mendiratta says:

        Dear sir,
        In one of ur previous comment u have said that If u buy 1 share from A and A sell 1 share to u then total volume for the day is 1 and total no of trades is 2. And here u said volume represents no of trades.I am a bit confused. Plz clear my confusion.
        Secondly where can i get to read about open intrest in varisity. I have heard 2-3 times abt dis term in above comments.
        Thank u

  48. suresh.ks says:

    All check lists are giving entry,but next day there are some events like IIP data,CPI. should we take entry after results announcement even if others give entry and sholud we follow these events,regulatory statements regularly?

  49. Vishal Saini says:

    Sir as you mentioned “traders usually compare today’s volume over the average of the last 10 days volume”.What about price?
    Should we consider average of last 10 days price or just previous day price for comparison with today’s price????

    • Karthik Rangappa says:

      In fact you can compare the price as well. This is exactly what the Simple and exponential moving averages does….it compares today’s value versus the time frame selected.

  50. Rajesh says:

    Hi Karthik, Is it possible to throw some light on volume spread analysis or have a separate chapter on that?

  51. Ankur Agrawal says:

    What does a green and red volume indicates below the charts?

    Some are really long candles and some are short. But I specifically want to know what does the color of candle mean?

    • Karthik Rangappa says:

      Gree means today’s volume is higher than y’day and red indicates that today’s volume is lesser than y’days.

      • Arun mendiratta says:

        In ur Dec 22’15 comment : “Abhilash – the volume bar turns green if the closing price of the stock is higher than the previous day’s closing.”
        Now ur above statement is Contradictory…. I am confused. Plz clear my confusion..Thanks

  52. Vel says:

    Hi kartik
    Can i track volume in every minute for particular stocks in the live market, for example Bharti Artl at 9:30AM volume 11000, 9:31AM volume 12000 9:32 AM volume 10000 for futures, if i can track on PI please let me know menu. thanks

  53. Vel says:

    Thanks for your reply, i feel to know a particular stocks volume since 9:15 to 3:00PM like 9:15 AM vol 1000, 9:16AM 1100 like that, if i add volume column on the pi means it will show current volume, but want to know addition of deduction of volume in every minute on the live market, if a pop up brings volume like 9:15 AM. 9:16 AM etc, So i can try to predict something

  54. Praveen says:

    The volume in yes bank, IDBI, Adani power and IOB are more than 20 day average on September 9 2016 . But still there is no investment from any financial institution or FII. Could this be the retail participation?

  55. madhuri says:

    Hello Kartik
    Based on what i have learnt from the previous lessons I today shorted Tata steel at 366.4.with a stop loss of 376.3 because the stock had opened Gap down of two previous days and also had opened in the red in the first hour of today’s session.
    However the stock ended in the Green and breached the stop loss causing a trade loss.
    Where did i go wrong .
    2.Similar thing happened with Hindalco which i shortedat 139.4 with SL at 143.1 based on similar situation as tata steel.
    Here too i had to book a loss .
    The volumes on both the stocks were good
    Please guide me where i went wrong and what additional precautions and parameters i must look for.

  56. Madhuri says:

    Thanks kartik
    I haven’t reached that chapter on Dow. I’m practicing as I’m learning.


    Hi Karthick,

    I’ve one query related volume. The Indices (Nifty & Nifty Bank) have not any volume information on pi and kite. But, the volume information of indices available in some websites charts. Ex: and

    Please, show some light on the volumes of indices.

    Thanks in advance.

    • Karthik Rangappa says:

      There is no volume for Indices as they are not traded, however their respective futures are traded and we show the volume information for these contracts.


    Hi Karthick,

    However, the nifty 50 constituents are traded in the market. So, in this case right for use the cumulative of all nifty 50 constituents stock volumes at related to the timeframes. ex: if I use nifty 50 chart on 10 min timeframe for intraday trading and the nifty 50 constituents stock volume added and shown on nifty 10 min chart., is it right for use as volume of nifty index? I think the and act as the same way I mentioned. Am I right? If any wrong means. Please correct me.
    If the way is right means why didn’t you also follow the same on pi and kite?

    Thanks in advance.

    • Karthik Rangappa says:

      You cannot add up the volumes of all 50 stocks because the weightages change for each of the 50 stocks….you will accordingly have to scale the volume information.


    Hi Karthick,

    I’ve another query about the stock market price driven depends on supply and demand. But, if I place a limit buying order higher than the current price or selling order below the current price, this will act as good as market order.
    And I know, if I want place buy order above the current market price, it is only option stop buy order and likewise if I want place sell order below the current market price, it is only option stop sell order.
    Then, how to price increase and decrease on the market depth and how to manipulate the price by the insider?

  60. MSP says:

    Hi Karthik,

    I am a PI user, in snapquote, TSQ 432000, TBQ 268500, still the price is moving up, i am confused, what might be the reason


  61. Priyank says:

    i’m very confused that why to buy in case of bullish trend.
    As, if the price is getting high then one should try to sell.
    Please clarify me ?

  62. Vijay says:

    I Hv one Question about some script like krishna fabrics rate and volume. i want to sell 123 qty urgently.

  63. kiran says:

    How can i check for stocks for which volume is doubled compared to previous day?Is it possible to check that info in kite or nseindia??if so please forward link..

  64. rita ranjan says:

    Is it possible that volume become zero at any particular time during intraday trading? What will happen in that case if anybody is in intraday trade with target and limit stop loss?

  65. rita ranjan says:

    Thank you sir for your prompt reply…… helps me a lot.

  66. DEEPAK GOYAL says:

    Dear Karthik
    Till now, I have got three perspective for looking at a graph – TA pattern, S&R & volume. Now my query is if I want to trade in Nifty options, I can refer Nifty 50 (underlying) for pattern and S&R (correct me if requited) but confusion is with volume. Shall I refer particular option volume/OI or Nifty future as Nifty 50 can’t have volume figure.


  67. Rakesh says:

    Sir, I am new to this share market So, please clarify my doubts.
    1) If I want to short sell the group B, XC, XD, XT, Z stocks through product type as cash and carry and I’ll hold it for next 2-3 days. Is it possible to it hold for next 2-3 days of that particular stock??
    2) If I want to short sell or buy group Z stock today and tomorrow I want to buy back or sell it but there is no volume in that particular stock. What will happen (whether my buy back or sell order is executed or not)?

  68. Ananth S H says:

    Dear Karthik
    Could you pls tell me how is the volume data is updated for volume bar in Zerodha Pi and Kite (source of data)…. I was viewing the EOD chart for ICICI Bank Ltd. and observing the trend of volume. And I realised the volume traded displayed in NSE / BSE website is completely different from what is shown in volume bar in Pi…. Also, certain other platforms suchs as ;
    Investing.Com; etc. give a different quantity

  69. Ashok says:

    Wonderful articles. I glad that i chosen a good company. I do have a question about Support and Resistance line. For day trading how many days should i consider for drawing support and resistance line. I face lot of difficulties drawing those lines.

  70. ankit says:

    Suppose Let say X share (actual share trading ) , their is open at 1091 close at 1083…. but i look at volume it is 10 lakh ….. but when i look more closely it recovered from low of 1055 …. so do u suggest institutional buying is der or not ….made a high of 1102 … so what is your view on this … how should i look volume now ….

    • Karthik Rangappa says:

      You should compare today’s volume with the last 10 or 15 days average trading volume to get a sense of how high or low today’s volume really is.

  71. saurabh gupta says:

    For intraday, how to predict with volume. For ex, let say share x was going down from open price 1100 to 1050 with increase volume, but at 2:30 stock start recovering from low to 1080 at close , so if i place trade at 2:25 seeing it is going down but it return back to up level. How to interpret this situation and avoid trade in such situation.

    • Karthik Rangappa says:

      Its hard to rely on volumes for this. On a day like this, its natural to expect high volumes. The decision is mainly from a price action.

  72. AVINASH KUMAR says:

    Hello sir,
    i m trying to learn trading from last one year and come to know that volume is leading indicator.But i have doubt why volume decrease??? whenever transaction happened either buy/sell ,its should be increment.Yes i agree that OI increase or decrease as per scenario but i think in every condition ‘volume’ should always increase in number…then why its showing volume decrease…its based on previous day data or why its happening sir???? i observe that OI increased but volume decrease….but my personal vies that Oi increase/decrease its pssible but volume should always + number…plz let me know sir why volume is negative value???

    • Karthik Rangappa says:

      You estimate the increase/decreased in Volume based on what happened previously. For example, if there were 10 trades yesterday and only 5 today then clearly the volume has decreased.

  73. Kavitha says:

    Hi Karthik,
    Can I take 1)”buy quantity = sell quantity” and 2)”(Buy quantity+Sell quantity)/2 =Volume”.
    But I can see “buy” is not equal to “sell” and “Volume” is far greater than Buy,sell quantity.

    • Karthik Rangappa says:

      End of the day the buys should match sell, only then a trade is said to be complete. The discrepancy you notice is in the number of orders…for example there could be 100 guys willing a total of 1500 shares but on the other hand 1 guy could be selling all these 1500 shares. In such a case, number of buyers appear higher than the number of sellers. However, the shares traded remains at 1500, which is the volume for the day.

  74. mehmood1 says:

    Sir…in zerodha chart volume are are represent in bar chart but what represent green and red color ?

    • Karthik Rangappa says:

      They indicate the price action, higher volume + higher price, compared to previous day = green bar. Lower volume + lower price, compared to previous day = red bar.

  75. Rameshkumar says:

    Sir how to calculate volume in trade tiger(sharekhan)? sir please guide me

    • Karthik Rangappa says:

      I’ve never used Sharekhan’s platform, Ramesh, so I’m afraid I cannot help.

      However, you need not have to calculate volume. Volume data is streamed from the exchanges, which is displayed on the charting engine.

  76. srinivasan says:


    Is it necessary to have volumes in the range of 100000 for any stock to be considered active intraday & or its based on the average volume over the 5 or 10 days range??

  77. Biku says:

    sir as you’ve given many examples to trade(short/buy) at 3:20. m confused what do you mean by that, cause market doesn’t take orders after 3:20

  78. Mubarak says:

    Dear Sir,
    Pls help for intraday trading how do I check live sharp surge in price, Pls recommend site, etc.

  79. Gokul says:

    Hi Karthik,
    1. When would the price volume chart be practically applicable? As in which situations and to do which kind of check?

    2. Assuming I’m doing positional trading, to decide on whether today is a good day to trade, is it good to wait till about 3 pm to get a sense of today’s volume w.r.t last 10 days’ avg. volume, unless there’s a trend already visible ? Asking since it shows cumulative volume..

    • Karthik Rangappa says:

      1) You can look at it along with any candle pattern
      2) As soon as today’s volume crosses the previous average. This could happen any point during the day and not necessarily at 3:00 PM.

  80. Manish Agarwal says:

    Hello, I am unable to plot the moving avg line for the volume on various free sites likes yahoo finance, moneycontrol, chartink, and paid applications like edelweiss. Does these do not have this feature or I am not able to find it.

  81. Naresh says:

    How does it differ if LIC is buying 500k shares resulting in vol. rise vs 50 small retail investors buying 1k shares each… volume should increase in both scenarios, right?

    • Karthik Rangappa says:

      Yes, it should. When an large institution buys, then along with volume, the sentiment also increases.

      • Naresh says:

        if so, how would we know the price increased due to big firms/small retailers? I still dont understand how come price increase when volume decrease. please explain

        • Karthik Rangappa says:

          Large volumes generally indicates that the an institution is at play. These are general observations, nothing in markets is set in stone.

  82. abhishek says:

    but from where can i get the open interest data. kite does not provide it i have checked.

  83. Anrus says:

    Does this technical analysis using volume trends have any significance for trading Nifty index futures?

  84. Ajay says:

    1)what is best way to select stock for intraday trading for buy?
    2)what is best way to select stock for intraday trading for sell?
    3)what is best way to select stock for short term holding( for 7 to 15 days holding time) not futures so only for buy?

  85. shabaz says:

    if a marubozu is formed with low volumes, is it better to avoid the trade and
    if a marubozu or like morning star is formed or like bullish engulfing pattern is formed with good volumes is the better opportunity to buy?

  86. Fahad Khan says:

    sir, how will we add moving average line on volume bars in pi? And will it be 10 day SMA?

    • Karthik Rangappa says:

      You can drag and drop the MA on volumes. YOu can set it to any time period.

      • Fahad Khan says:

        sir, when i m dragging 10 day or 100 day SMA from chart to the volume bar , it settles near the very bottom of the volume bar. How am i supposed to know 10 day average volume? thank u.

        • Hanan Delvi says:

          Why don’t you try creating the SMA directly on the volume bar by choosing to have the overlay directly on the volume? This should work.

  87. ZO0615 says:

    Is there any freely available tool which will calculate various candidate of option stock and suggest the stock best deal ?

    I had experienced that, while doing various calculation and to come to conclusion, The price of option became changed . and reached to different level

  88. Chandrashekhar says:

    Hi sir,

    In checklist you mentioned that Ensure above average volumes on both buy and sell day
    but my doubt is how can I confirm the volume while buying because we will get to know actual volume at the end of the day.
    Do you mean confirming yesterday’s volume with last 10 days average volume,where the pattern formed.

    • Karthik Rangappa says:

      Usually, if today’s volume is greater than the average of the last 10 days, then it considered as good volume.

  89. Shyam says:

    Hi Kartik,

    I am attaching the JPG file of jackson investments a penny stock.Pls download the file frm the below link

    I see the buy qty is over 19 Lakh and the sell qty is 0…How is this possible? Also this stock is forming higher high and higher low..with massive volumes. It is also breaking all pivot resistance levels .Does this indicate smart money accumulation or is this some kind of retail participation?

    • Karthik Rangappa says:

      TA works best on liquid stocks. This one looks like its operator driven and attracts sporadic liquidity. I’d avoid.

      Given this, from the looks of it – no smart money here.

  90. Waqaar says:

    Hello Sir,

    How do these big DII and FII invest money in Indian Stock Market ? As you said if LIC will do from open market, it will impact the price then how they do it ? And with continuation of previous question, the TCS said that it will buy back shares worth Rs 16000 crore to benefit retail investor, then will it buy back from open market ?


    • Karthik Rangappa says:

      Buy back is from open market, but the procedure is different. Buy backs if done right, certainly has a huge impact on the sentiment of the stock. Btw, DII and FII also use the open markets…and depending on the size of the trade, it can either be a bulk or a block deal.

  91. shabaz says:

    total volume data is given on the end of the day and you have written on all of your pages that either you are a risk taker or averse, you have to buy the stock after conforming at 3:20 pm .
    so according to you, we have to buy the stock around 3:20 pm confirming the volumes, patterns and s&r.

    • Karthik Rangappa says:

      Remember volume data is given out during the day…and it only increases through the day. So if it has crossed the previous day’s or say last 10 days average volume, you will easily know.

  92. shabaz says:

    can you explain little bit about prior trend as i am confused that is there any fixed given percentage to define a prior trend? May be 4-5% in a week ?

    • Karthik Rangappa says:

      Yes, a movement in price amounting to at least 5-8% would qualify as a prior trend. Of course, the numbers could vary based on each individual’s trading experience, I’ve mentioned what works for me.

  93. Aishwarya says:

    Hello Sir,
    In intraday 15 min multiple candlestick pattern, suppose if the volume is high for the first candle and it is low for the second candle, can we go for it or should we refrain from it?

  94. Deepak says:

    Thanks Karthik! Really well written.

  95. GAURAV SINGH says:

    How can I find out average volume of last 15 days on Zerodha Kite?

  96. Valentine Gerard Edward says:

    Could you explain this line. “if the institutional investors were selling then volume would increase and not decrease”. But in reality it has to be the other way round only na??

  97. KUMAR MAYANK says:

    Hello sir
    You described the importance of volume in TA. While browsing the technical indicators in Kite i came across volume profile. Later i googled it and got some fragmented but important information regarding volume profile. Well i learnt about it from random sources but it would be better you write about it. Frankly speaking i am addicted to your writing. I think volume profile is as important as the volume chart based on time .
    Varsity student
    Thank you 🙂

  98. Phani says:

    In the volume graph, I see 4 colours (when I see the candle stick graph for more than 1 day). I see additional green and grey bars. Can you please educate what these candle colours indicate?

  99. KUMAR MAYANK says:

    Hello sir
    I have a very big confusion at least i assume it is. I am sorry as it is going to be a bit longer paragraph.

    Based on the checklist we can have simple vanilla “stock” trade, i.e buy low sell high. But as you taught us Fut contract gave leverages. You also told that impact cost of stocks were higher than that of index. In this situation we are left with the best option to trade in either Index Fut contract or option. For a moment we leave the option contract. But the problem is how can one get the directional view of index, the underlying? As index has no volume record & we know volume is a vital organ of TA. Also it is very different entity than a stock.
    So, my question is- How can one get the directional view of index so that one could trade its Fut contract as it mimics the underlying?
    I would like to add just one more confusion.
    If the future contract directly mimics its underlying then why is it necessary to look for the volume of the contract?
    Thank you 🙂
    Varsity student

    • Karthik Rangappa says:

      Yes, for index there no volume, but you can always look at the Futures contract and check its volume information.

      • KUMAR MAYANK says:

        But sir, my question is still unanswered. I want to know how we can apply TA on index to trade its Future contract.

        • Karthik Rangappa says:

          You can apply TA on the Index future’s price action. You can also look at the Index spot chart for TA patterns.

  100. Ravi01bhati says:

    Can we apply the concept of volumes to options trading also?

  101. Nawin Aswin S says:

    See when the volume increases with price……how do you say that the stocks bullish ….for all we know its only increase in traded volume…it could be institutional investor selling to a large number of retail investors, right ?

  102. ZQ0852 says:

    I am a bit confused about the ananlysis of market depth in intraday, means What is the importance of market depth data while taking a position?
    My confusion is due to the fact that, sometimes sellers are five times the buyers, but the price still oscillates, I mean when sellers are more than buyers, the price should go down?? Is not it?? And vice versa.
    My concern is – What role does market depth plays ??
    And Second one sir, market depth data is combined of both the exchanges or only of NSE or BSE, if it is not combine should we look at the market depth of both the exchanges.


    • Karthik Rangappa says:

      Market depth helps you understand how liquid the instrument is. You can assess the following with it –

      1) Bid-Ask spread – the narrow the spread, the higher is the liquidity.
      2) Higher the liquidity, higher is the loss owing to impact cost when you place market orders
      3) It also gives you a sense of how many shares you can buy or sell at a given time – particularly helpful while placing large orders

      Market dept is for single exchange.

      • ZQ0852 says:

        Dear Sir,
        Thanks for your guidance, Your experience and opinion both matters for me, I think you are a “virtual mentor” for thousand of market participants, but, why I am buttering you is because you changed my perception towards market, I am able to make small but consistent profit only because of you.

        Now coming to the question above, Sir What I want to know, as per your experience,
        Can we guess price movement on the basis of the total ask and bid quantity ?
        Because, generally what we think is more the number of buyers, more the chances of the price to move up, but as I observed in intraday, the sellers price is five times the buyers, but the price is still fluctuating, in second case the sellers are higher in number than the buyers, but the price is still going up. (I am talking about total quantity).
        I want to know your opinion.


        • Karthik Rangappa says:

          Thanks for the kind words and encouragement, means a lot to all of us at Zerodha 🙂

          It would be very hard to estimate the price movement based on total bid-ask spread and total buy sell quantity. Remember, if more number of buyers have to buy then there is an equally large sell order. Its best to look at the price trend and make an assessment on the overall direction of the market.

          Good luck.

          • ZQ0852 says:

            Dear sir,
            the market depth show total number of buy and sell orders, top five, is this data included with stoploss and target order (say BO) or it includes only the main order i.e one order either buy or sell.
            say i have placed a BO for buying a stock, literally it is three in one order, in this case market depth will treat it as only one buy order or one buy order plus two sell order.

            By the way “HAPPY INDEPENDENCE DAY ” sir………..

          • Karthik Rangappa says:

            Happy Independence day to you too!

            Yes, the market depth shows the top 5 orders that are placed in the market.

          • ZQ0852 says:

            Dear sir,
            you have answered my question, what I want to ask is “Does the market depth considers stoploss and target orders or it only considers the main order buy or sell (for example I have placed a BO order).


          • Karthik Rangappa says:

            No, the market depth cannot distinguish between SL and target orders. It will list all the limit orders that come into the exchange’s system.

  103. trader says:

    How to identify swing periods of high momentum and high volatility in advance?

  104. Arun mendiratta says:

    Dear karthik sir,

    All of sudden on a particular price a huge volume traded like 15L on a particular price and total volume of the day is 20L…stock price didnt move much with that huge bid took place, what could it mean…smart money or something else?…even the stock price didn’t move much in next enitire week…kindly if possible plz light on this.

  105. Nikhil Verma says:

    Hey, Karthik sir

    Can you please suggest me the book that writtened on the volumes. Because I found that the volumes is the best way to find professional institutions activity on stock..
    I want to learn it more deeply. Can you suggest me some books…


  106. Sahil Jain says:

    Hey , it’s Sahil Jain
    Stock buying and selling is simultaneous process so why stock price increase or decrease .. you said that 100 share bought by someone but meanwhile 100 are also sold by someone , so Why .??

  107. Abhi says:

    Karthik, I have been trading based on TBQ Vs TSQ in relation with the candle stick patterns for the last few days…. I made some profit as well…. Do you think I just got lucky and this is not ideally a good method for intraday trading?

    • Karthik Rangappa says:

      I cannot really comment, Abhi. I’ve not had great success trading based on TBQ vs TSQ, but this does not mean others can’t figure a way to do this 🙂

  108. ZQ0852 says:

    Dear sir,
    Could you elaborate the meaning of series like EQ , BE, P1 , P2 etc. in nse delivery data archieve. Link for the same is below:


  109. Anonymous says:

    Hi Karthik

    On the BHEL daily chart for august 11, there is a hammer formation at the bottom of a downtrend, the volume is above the 10 day sma line. It is sell volume. The next day the stock does goes up. So in this case there was a bullish candle stick pattern, the volume was also large but in the bearish direction(it was sell volume). Can you explain what is going on? I have seen this happen in many setups.You have said that a recognizable candlestick pattern + large volume is a good trade. I thought the volume doesnt support this trade but the price still went up over the next few trading sessions. Would you say that the volume supports this trade or does it indicate the very opposite direction? what could be done in such situations?

    Thank You.
    Also thank you so much for this very coherent and accessible guide to the markets and the varsity initiative. This has been extremely helpful and we are very grateful for all your hard work and guidance.

    • Karthik Rangappa says:

      It’s hard to distinguish the volume as a sell or a buy volume. Volume does not really have a character. Remember, if I buy 100 shares and you sell 100 shares to me, then the volume is 100. It’s very hard to call it a buy or sell volume. For this reason, we associated volume with the price to give it a character.

      So, my primary decision-making tool will be the candlestick, backed by volumes.

  110. Ravi Kumar BA says:


    Why is is difficult to get the “Volumes” involved with a stock’s “Buy” only? i mean, can’t the NSE/BSE segregate the volumes by “Buy Volumes” and “Sell Volumes” that way we can know how the market is trending?

    Also, Can you give a quick Overview of Stochastic and which is better Fast or Slow Stochastic for Day trading, and what should be the boundaries used as a cue to go long/short?

    No where on internet its explained well like the other indicators are explained in Z-Varsity..Honestly!

    • Karthik Rangappa says:

      That would not be possible Ravi, think about it….just by looking at volumes, how can we if it was a buy or a sell volume. Ex:100 shares bought and 100 sold, how do we distinguish? That’s the reason traders associate price with volume.

      I’m not a big fan of Stochastic, it tends to give way too many signals. But between the two, I’d watch out for the slow one.

      Thanks for the kind words, Ravi 🙂

      Happy learning.

  111. Ravi Kumar BA says:

    Also, which Volume Indicator (Volume underlay, volume Oscillator etc) is good to club with other indicators for Day trading

  112. Ravi Kumar BA says:

    Karthik, I heard a lot about “Supply and Demand zone Trading Strategy” …Does it work all the time? Can you please do a course on it.

  113. Anoop CR says:

    Hi Karthik,

    When we consider volumes, are FUT volumes and EQ volumes are different or volume will be sum of both ? I am trying to co-relate it with open interest. In OI chapter. When we talk about volume in IO, I believe that will be no. of lot * lot size. I am bit confused here. I see there is some strategies based on OI and volumes. In such cases do we need to consider the FUT volume ?

    • Karthik Rangappa says:

      Future volumes represent the number of contracts trades and EQ vols represents the number of shares. I’d suggest you consider Futures volume.

  114. Avinish Sarvaiya says:

    How much volumes one can consider as good?

  115. sangram panda says:

    the quantity of share shown in technical analysis software is mixed quantity of both buy and sell or the neutral amount

  116. somasundaram says:

    hello sir
    how to plot 10-day moving average in volume panel ?

  117. Arjun says:

    Hello Karthik!
    I have gone through the content, Simple and Perfect!

    How do we interpret if Price is flat and volume has increased?
    Sorry if this is a repeated query or covered in the content.

    Regards, Arjun

    • Karthik Rangappa says:

      Thanks. In such cases, I’d look at the prior trend and make an assumption that the volumes are in line with past trend.

  118. somasundaram says:

    hello sir,
    how to plot 10-day moving average in volume chart….

  119. pranath ronghang says:

    Sir, I have started studying your educational modules after suffering huge loss in trading since last 3 years. your articles are so simple and nice that i feel very interesting. Basically I was doing intraday trading. I have convince that it is impossible to make money in intraday trading. After going carefully through the articles in TA of your versity I feel swing trade may be the best option. pls I need your advice in this regard. Also pls can u tell me about volume chart in studies of chart in kite zerodha trading portal.

    • Karthik Rangappa says:

      By volume chart, I’m simply referring to volume data plotted below the price chart. Anyway, please do take your time, get back to markets only when you feel confident. Remember, markets will always have opportunities for you.

  120. sanjay says:


    can any one guide me how to draw 10 day moving average on volume in kite ,

  121. Umer Azam says:

    Sir, I did not read all the comments as there are many Can you just tell me that do both long Candle and high volume mean the same. I mean to say that does a long candle signify high volumes? Or is there no correlation between length of candle and volume?

    • Karthik Rangappa says:

      Long candle means the range for the day is high, does not imply high volume.

      • Umer Azam says:

        Sir, then what is the difference between high activity and high volume? You had previously said that long candles signify high activity and vice versa.

        • ZQ0852 says:

          Dear Umar,
          High activity may be speculative (intraday), to confirm the point that the high activity is supported by volumes or not, you can crosscheck the delivery percentage for the day.
          If high activity and high volume are supported by high delivery percentage it means more paticipants are hopeful about price action in future,but if the it is not supported by delivery percentage then both activity and volumes are speculative.

          Kartik sir please correct if I am wrong


        • Karthik Rangappa says:

          Long candle plus a heavy volume makes one believe that the outlook is bullish. Volume on its own does not really convey information.

  122. Ash says:


    1. Should volume be checked as one of the criteria in the checklist when trading in nifty index options and futures like we do for spot market?
    2. If yes, where do we find the average 10 days data for options and futures? Pointers please.


    • Karthik Rangappa says:

      1) Yes, I’d do that myself. Check volumes on spot and then take action in F&O
      2) It makes sense to check spot volume, its available on Kite.

      • Ash says:

        Guess you didn’t get my question Karthik. There is not spot market for Nifty 50 Index right.

        I am asking about trading the Nifty 50 “Index” itself. Should we check the volumes of say Nifty 9800 PE when we buy it or like should we check the Open Interest (OI) when we trade Nifty 50 Index future?

        • Karthik Rangappa says:

          The thumb rule is to check the underlying’s spot volumes while trading its derivatives. Since Nifty Index has no volume data, perhaps check the futures volume. I’d not pay too much attention to OI.

  123. Rajinder says:

    Dear Sir,
    I have a small and very basic question:
    1. Some time I have noticed that candlestick (5 / 15 min) and volume bar are of different colour. Does it signifies any thing.

    2. Whether trading in F&O also adds in volume.

    3. If yes , a lot of 1000 adds as 1 or 1000 volume.


    • Karthik Rangappa says:

      1) Not really
      2) It adds to open interest
      3) 1000 … you can always divide the total volume by lot size to get the number of contracts trades

  124. Naman says:

    What is the maximum position size (in terms of % of average daily volume) that I can trade in a particular stock comfortably without actually moving the market? for example, the average daily volume of stock XYZ is 10 million, so for intraday trading purpose, what is the maximum no. of shares I can buy and sell at a given moment ?

  125. Dinesh Reddy says:

    Are the volumes of currency pairs shown in lots in kite??
    If it is so, then if the volume of a 10 min candle is shown in USD / INR pair as 60k, then does that mean that in 10 min, a total of 60,000 lots were traded or 60 lots were traded??

  126. Rahul Jain says:

    How to place volume chart as shown above with average line between them at kite platform zerodha?

    • Karthik Rangappa says:

      When you select the average line, opt for the volume plane. This feature is available on Kite. Suggest you give a call to support if you find it difficult to spot this.

  127. Jawahar says:

    Hello Karthik Sir,

    In intraday 15 min chart, if the volume crosses the avg in 6 or 7 minutes(pattern also confirmed), shall I enter the trade or shld wait for 15 min to get over??

    • Karthik Rangappa says:

      If your trade is based just on volume, then you can go ahead and place the trade as the volume is cumulative and only increases during the day. However, double check your strategy to make sure you know your strategy well.

  128. Waseem says:

    Sorry for the lame question but I am a newbie
    I had a question I am not sure if that is related to volumes part.

    1)Suppose if I buy say 800 shares of some X company on day 1 and the somehow the target price which i thought initially would take few days triggered the same day.. and I then put the order to sell it will it be considered as intra day trade?
    2)I was placing the limit sell order seeing the current market price has reached the expected target but it was not being executed , is it because there was no buyer available at that price? but then how cum the market price was still the same as my target selling price?

    I was just wondering that if the chart is showing Y Rs. as current market price and I put a order to sell at Y Rs. price is it still possible that the order will not be executed? Am I missing something? is it the number of shares I am selling creating that problem? I am using kite trading terminal..

    • Karthik Rangappa says:

      1) Yes, if you buy and sell the same day, then that would be considered an intraday trade
      2) It could be because the price may not have hit your limit price
      3) Yes, the price can very well move quickly and your limit price could be held pending.

      • Waseem says:

        If the current market price is at Rs. Y price, then how should I decide it is good to sell at that price I mean what should I look for that the stock is trading at that price long enough for my limit price to trigger and execute the order.

        • Karthik Rangappa says:

          Liquidity is one key criterion. If the stock is not liquid then there are possibilities of intraday gaps, which means the risk of SL not triggering is high.

          • Nitin says:

            Sir , How much volume required to buy or sell share to avoid slippage , like 5000 volume in 15 mins timeframe ..can I buy or short 500 shares

          • Karthik Rangappa says:

            This depends on the liquidity of the contract or the scrip, Nitin. Higher the liquidity, lesser is the slippage.

  129. venu says:

    How can we set volume chart with red line for 10 days average in kite.?
    i have set volume chart under studies in kite is it correct?Volume chart is green and red what does it indicate ?

    • Karthik Rangappa says:

      Yes, that is correct. Load the volume chart from studies and opt for the color you want from the color palette. The green indicates an increase in volume and the red indicated a decrease in volume – both compared to previous day.

  130. siddharth anvekar says:

    Karthik Sir,
    This is regarding the volume confirmation of a trade.
    1) For multiple candlestick patterns should volumes confirm on all candles or only on the last candle (Risk trader) and for Risk averse trader should the volumes confirm even on the confirmation candle that is formed after the pattern?

    2) For single candlestick pattern should volumes be confirmed on both pattern formation day and the next confirmation day for Risk Averse traders?

    Thanks Sir.

  131. Vipin Mohan says:

    Hi Karthik,

    I can find only approx 88 studies in Zerodha Pi where as there are around 120 in Kite.
    I sent an email to support and they replied that “we use different charting libraries for both, so the difference”.
    But when I tried in Pi many simple charts like Moving average, Volume profile, Alligator etc not available in Pi. [SMA and EMA available as separate chart though]. Does this mean Kite is superior to Pi?

    Even after dragging I can’t find a way to directly put SMA over volume bar. Any helpful video link or article link please?

    Btw thanks a lot for the simple way of explanation. Also please let your colleague (I suppose he is) Hanan Delvi know that his sound is amazing in the YT videos.

  132. Brahma Reddy says:

    Iam confused with green and red volume bars sir.How I have to take if it is a red candle day and below the candle there is a red volume bar above the 10 day moving average???If there is a candlestick pattern,Can I take trade??

  133. ajay says:

    Hi Karthik avare ,
    Kindly explain this in layman words with an example as how to Trade with this in Kite/Pi –
    Price Volume Trend
    PriceVolumeTrend(Vector) PVT(Vector) = The Price and Volume Trend index generally precedes actual price movements. The premise is that well-informed investors are buying when the index rises and uninformed investors are buying when the index falls. TREND(PVT(CLOSE)) = UP TREND(PVT(CLOSE)) = UP

  134. Amit Kapoor says:

    Hi I need some clarity on the simple moving average line for volumes. If I am on 5 min candle stick chart and I select simple moving average of volume with period as 10, what does that mean. Is this moving average of 10 days or 10 mins or 50 mins

  135. Rajinder says:

    Dear Sir,

    I am little confused with volume indicator. I was observing a stock’s volume in equity, future and option trade.
    I observed that no two are alike. whether it means:-

    1. Volume shown in one is for that only i.e. traded volume in equity is in equity only and same way option in option (in multiple of lot size) and futures in future only.

    2 They do not add up.

  136. Rajinder says:

    Dear sir,
    In Zerodha kite, PI or any other terminal when you are giving order for any thing there is one option DISCLOSED QTY.
    1. What does it mean.
    2. Whether it effects volume shown in market depth.
    3. How reliable is info shown in market depth.
    4. Can you make any strategy on basis of info available in market depth (offer price, bid price, volume)
    5. I have seen some people trading on such platform where there is no chart only info available is best offer price, best bid price, LTP and some others and still they make profit. I have tried to ask them how they do it but no avail. can you help in this


  137. jyotshna says:

    Please answer
    1.) Volume is higher of a share whose CMP is low, Consider share of a company whose CMP is 5 Rs. and consider another company whose CMP is Rs. 1000. If one has to take position based on volume it may mislead ?
    2.) Is it good idea to compare volumes of different stock, like people compare share price % increase in a day ?
    3.) Where to check DII and FII buy sell quantity at EOD.

    • Karthik Rangappa says:

      This is generally true, to be doubly sure you may also want to check for the traded value. I dont think you can compare the volumes of two stocks, it won’t be a fair comparison. You get the DII/FII number on NSE’s website.

  138. Ruchi says:

    Hello Zerodha Team,
    I am new to trading and a beginner rather learner at this moment. Your Varsity blog is amazingly useful. I really love the way complicated topics have been explained with simple examples. Simple language, good info, all at one place. Thank you.
    You reply to all queries and your support team is also very supportive. I don’t really know the story who started this company but I have a feeling that a bunch of good people working as a team. More power to you guys! Keep it up. 🙂
    Thank you.

  139. Samarth D Thakore says:

    Dear Sir,

    When we say people are buying and that’s why price is going up,

    But, I could not get the point ? They buy from whom ?

    It’s always… Someone to sell… Do number of buys and number of sales would remain the same!!!

    Please clear!!!

  140. DIVYA SANGHVI says:

    Does a candlestick give out any significant trend for volume?
    Does a long candle indicate higher volumes traded?

    Thank you in advance.

    • Karthik Rangappa says:

      Candlesticks on its own do not give out info on volume. Long or short candle only indicates the range. You will have to track the volume separately.

  141. mehul says:

    Hello karthik,
    I have a query
    In volume underlay option in kite, there are green and red volumes.
    So when red volume bar is big, does that mean volume is high but there is selling pressure OR when green volume bar is small the buying sentiment is lacking ?
    Also kindly let me know which time frame is better for judging volume bars.

  142. Biswajit says:

    Hi Sir,

    We can see 5 bid and 5 Ask price while trading or investing. So If i want to buy 100 pcs. of SBI at Rs. 335 and place my order and if it is the highest price then i can see my price at the top of the bidder. At the same time if i want to sale 100 pcs. of SBI share at Rs. 330 then i will come under the Ask group and can see my price. This is clear to me.

    But my question is when i go for short a stock (example – SBI 100 pcs.) then how it will show in the Bid/Ask price? Is it just opposite to that above mentioned concept? It means as it is short a stock , so 100 pcs will show in Ask group first and when i will close the position or buy it at lower price then that price will show in Bid Group?

  143. Ramesh says:

    Hi Karthik,

    Could you please share the Pi code to scan scripts trading at day high with volumes > 10 day average.

  144. chidambaram says:

    Hi Sir,
    I would like to know that, if i am a risk averse trader, then should I look for the volume to be higher on the P2 day also (say P1 is a Marubozu ) or is it enough if the volume be higher on P1 day alone ?.
    2. if the volume on P1 is low and P2 is high, can I go on with the trade ??

  145. chidambaram says:

    Hi Sir,
    If the stoploss is hit with a low Volume should we need to close our position or can we wait?

  146. Karthik S says:


    Who are weak hands? How one to be cautious when they buy/sell?

    • Karthik Rangappa says:

      Weak hands refer to traders who prematurely book profits/cut losses. You can be cautious by following the general rules of the trading system you follow.

  147. learner says:

    I just have one very basic question. What does nifty volume or rather any index volume suggest? You cannot directly trade in nifty rather you can only trade in future or option, so what does nifty volume refers too?

  148. Priyesh Kumar S P says:

    Hello Sir, thanks for initiating such wonderful service at free of cost.
    My question is, when the volumes are less than average volume level and the stop loss has been hit should i exit the position or wait for the smart money to come into play.

  149. Gaurav Rana says:

    hi ,
    what is he color of the volume Bar indicates ?

  150. invest_novice says:

    You have mentioned the following

    In the chart above, you can see that volumes are represented by blue bars (at the bottom of the chart). The red line overlaid on the volume bars indicates the 10 day average.

    How to get the red line in either pi or kite. I couldn’t find the option. Only volume is coming.

    • invest_novice says:

      Ok found it. I should select moving average and select field as volume.

    • invest_novice says:

      In kite only the overlay works. In pi I couldn’t find an option to overlay the red line over the volume bars

    • Karthik Rangappa says:

      In the list of studies, click on Moving average and select the field as volume. However, before you do this make sure the volume chart is loaded below the price chart.

      • invest_novice says:

        In kite it works.

        But in Pi. Under study, there is no moving average option. There are separate simple moving average and exponentioal moving average and moving average envelope. If I try simple moving average and select volume it only opens a separate chart

        • Yes, it will open up a separate chart. You can, however, open one chart for the Price and another for the moving average volume and view both of them on the same screen. I’ve illustrated the same in this screenshot.
          Check this video on how to add multiple charts on the same screen

  151. Sampath says:

    What do you mean by long trade and short trade? It is little confusing in volumes and S&R chapter

  152. Prakhar says:

    If there is sudden increase in price with high volume candle and then there is very low volume. What does it means.

  153. Sreejith says:

    In Kite, when I select volume studies, I see volume bar in Green and Red colour. Is it important to consider the colour of the volume bar in accordance with the strategy given in this article?


  154. trader says:

    how reliable is the intraday volume data during a live trading session? I have heard that since there is this “disclosed quantity” option while placing trades many traders actually do not reveal the real quantity traded which results in inaccurate display of volume data during live intraday sessions?

  155. surya prakash says:

    Dear Karthik Sir,

    Is it possible to use Ask volume and bid volume in intraday scanner ?
    If yes then how to use it

    • Karthik Rangappa says:

      Traders use this information to identify price spots which have maximum liquidity. Identifying liquid price points is very crucial while trading intraday.

  156. Padmanav Tripathy says:

    Iam Not Able use Zerodha Chart,Can’t Edit,Draw.What To Do ? Padmanav Tripathy Zerodha ID-YA3973

  157. Prateek kumar jaiswal says:

    Hi Karthik,
    A lot of time in market depth I have found very high numbers towards bids side say more than 10 lakh and quite less numbers towards offers side comparison to bids say around 2 lakh but still prices fall and vice versa. One thing i understand we see only best 5 orders in market depth which may not reflect order positions well but how to tackle such situations and/or what to understand from such kind of market depth from volume point of view.

    • Karthik Rangappa says:

      Bid and Ask is transient in nature – meaning it keeps changing and the market depth goes beyond the top 5 bids and ask.

  158. Arjun Rajwar says:

    Sir EMA is not getting overlay on Volume in PI . First i Add EMA on chart then click on source and then following eq Volume.
    Despite EMA is not overlaying on Volume.
    please help with snap shot.

    • Arjun, seems to work fine. Check this screenshot out where I have an EMA Volume Chart and Price chart open in the same screen

      • Arjun says:

        Sir EMA should be overlay on volume Bar not over price chart to interpret average traded volumes are above or below average of last few days.
        EMA should move according to traded Volume .
        In single window on same chart but in screenshot after applying volume chart 2 different window opened.

        • Karthik Rangappa says:

          Yes, to assess the volume, the EMA should overlay on volume. You can open two different window panels in the same view, not an issue.

  159. Aditya Jain says:

    I am slightly confused Regarding Volume.
    Suppose, A stock closed forming a Red Candle With Very High RED Volume Bar. But the Closed Stock Price is In GREEN(Closed price of Day is Higher than previous day Close)

  160. Aditya Jain says:

    Varsity is amazing . It helped me a lot in clearing Basics. But Now, I feel Stucked. I want to learn more. So, Can You Guide me about any Books, Blogs or Any Source from where I can learn More about Trading, Market & Economy.
    Simply, I want to ask the Pattern Of Learning The market. Now, where should i Focus On.

    • Karthik Rangappa says:

      Aditya, I’d suggest you read through the entire contents of Varsity. It has a lot of information and content to hand hold you in the market. It is also structured well – to ensure you get all the information in one single place.

  161. Aditya Jain says:

    I have seen a Line on BSEINDIA website. can you tell me what does it mean?
    “Median Response Time ( µS ) Equity : 2 Derivatives :6 Currency : 3”

  162. Aditya Jain says:

    What is “consumer Anticipated Index”.
    How Can I actually Anticipate this?

  163. Dhananjay Chaudhari says:

    What stance must a trader take when when the candle forming is a doji or spinning top candle after a bullish marubozu but the volume is much higher than the average? Should we go with the volumes or the candle?

  164. chidambaram says:

    Hi Sir,
    Have few doubts.
    1.It is explained that , “Increase in volumes indicates the presence of smart money”. Does this mean that Institutional investors/big payers also trade on intraday and swing basis. !! I have heard that those big players only invest for a long term.If so they invest for a long term then how come volume increase and decrease frequently in indraday charts and EOD charts.I suppose that volume should only increase once in a while.
    2.In a bullish engulfing pattern can the P1 red candle be a spinning top? or it should only be a weak red candle with significant price fall?
    3. Can a hammer be considered valid pattern if it is formed in a downtrend with a gap up opening? Or else for a hammer pattern to be valid ,the opening should always be less than the previous day?

    • Karthik Rangappa says:

      1) Yes, few institutional players trade the markets on a short-term basis
      2) P1 should be a weak red candle
      3) It’s best if the opening is below P1’s low/close.

      • Prakhar says:

        Can you name a few Institutional players who trade in short terms or how can we know the funds which deal in short term trading. Also would you advice to invest in those funds if it is possible.

        • Karthik Rangappa says:

          All AMCs also take up short-term trades – in fact, look at any MF which has an arbitrage scheme and they would be doing short-term trades.

          • shishir kumad das says:

            kartik ji
            do fund manager of any mutual fund do intraday ?
            if so then can we trade those stock daily becoz those stocks are choosen by fund manager ?
            sir which fund’s share traded daily
            debt fund
            liquid fund
            equity fund
            arbitrage fund
            from which fund portfolio we can pick the stock for intraday.
            kartik ji thank you.

          • Karthik Rangappa says:

            It is unlikely, but if at all, then probably the fund managers running Arbitrage scheme may execute few trades on an intraday basis. I’d suggest you read more about Arb funds here –
            However, you cannot really pick stocks looking at MF portfolios. The thought process and reasoning for stocks being picked can completely different from our understanding.

  165. chidambaram says:

    Hi Sir,
    Suppose in a swing trade, if we have missed the support point (our SL) since because of huge market movement, that lead to a huge loss and if the price now has reached near to the next support point and RSI is also below 30( oversold region).Then can we wait and check if the next support level could give some up move and so that we can reduce our loss?Or should we need to close our position what so ever without waiting for the next SL level(even if the price is near to that level)?

    • Karthik Rangappa says:

      Once your SL (or target for that matter) has been triggered, then its advisable that you close the position instead of creating new SL level. In my opinion, chasing new SL will only complicate the matters.

  166. Prakhar says:

    Does bulk deal causes sudden increase in volume in kite charts. As sometime before in one minute candle of sbin there was 10 times the average volume candle and also the price had moved in any direction. Also the time of that volume candle was same as the Time in which bulk deal took place. This confused me as I thought that bulk deals are off market transaction and should not cause increase in volume traded.

    • Karthik Rangappa says:

      Bulk/Block deals are carried out as OTC trades at prices matched by markets. So it does not really affect the markets or the charting systems. The volume spike you are talking about is quite common in the market.

  167. chidambaram says:

    HI SIr,
    If we are looking at weekly chart and if the volume for it has to be high , what about the weeks which have trading holidays?(1 or more trading holidays – eg. this week).Isn’t it obvious for the volume to be low comparatively , since there are trading holidays?In this case what to be done for trade based on weekly chart?How to find whether smart money has entered or not in those weeks?

    • Karthik Rangappa says:

      Very true, for this reason, you will have to have at least 6 months of data to get an approximate estimate on the average volumes.

  168. Ashish says:

    Hello, karthik sir,

    My query is that – ” if on a particular day , volumes are not above average, however the volumes have been above average or touching peak point at some day(s) within previous one week, can this trade qualify for buy rating , subject to other checklist points complied.

    • Karthik Rangappa says:

      Not too comfortable if the volumes do not support. However, I would suggest you take this on a case to case basis and take a call based on the overall sentiment in the markets.

      • Ashish says:

        Thanks for reply, however i just want to know that if i am swing trading for 4-5 months , and volumes were high 2-3 days back but i missed the opportunity to buy, it still conveys that smart money is pouring in. Then in that case, i can buy the stock assuming that volumes have complied [and other checklist also complies].

        My second question is in continuation to above point that does the candlestick pattern holds relevance if i am buying stock for 4-5 months after checking MACD, EMA crossover, RSI , S&R levels , Volumes [in past week] etc other indicators. Because as per my observation, even if i buy today based on bullish pattern , the stock may rise and fall over next few months many times but primary trend should be bullish and based on that i want to swing trade. Pl correct me.

        I would be grateful if you could solve these doubts.

        • Karthik Rangappa says:

          Ashish, frankly there is no hard and fast rules. These things are expected to improve the odds of being profitable – you are always free to experiment. In fact, this is how you find your edge. So go ahead and try this and see how the trade pans out, make your observations and improvise.

          As a thumb rule, the relevance of a candlestick pattern starts to diminish after about 4 -5 trading days from the pattern formation date.

  169. Deep Dave says:


    Why I am unable to see any volume related Data/Charts on the Zerodha Webapp?

    In the Studies section, there are multiple Volumes related Charts, but none of them, really work when selected.

    Also, I really wanted to appreciate the new Webapp, its absolutely amazing.


  170. Kedar says:

    I am little confused with this statement. The price increasing, because market participants are buying.
    Buying and selling happens at same time. Then how can we say buying increases the price and selling decreases, because at the same time some participants are also selling. Then why the prices are increased?

    • RG says:

      Markets participants are buying in this context means that there are more buyers (more demand) than sellers. So the demand is more and the supply is less and this is what leads to an increase in the price. Just like how Onions used to cost around Rs.100 /kg in some instances in the past due to more demand but very less supply. Eventually, as the supply increased, the prices of onions decreased and reached an equilibrium level (where demand = supply)

    • Karthik Rangappa says:

      Agreed. But the increase or decrease in price depends upon the price at which the buyers and sellers transact. When demand is high, buyers are willing to buy at given price, hence the price tends to increase. Likewise, when the demand is low (desperate times), the sellers would want to sell it any given price, hence the price moves lower.

  171. RG says:

    Hi Karthik,
    One point from the checklist – “Volumes should confirm to the trade”. This means that we can execute a trade based upon candlestick patterns only at near end of trading day right? Because we can confirm the volume check only at a time near the market end time.

    Also apart from this, in general, all the trades discussed in these modules are to be executed either at the candle forming day itself at around 3:20PM or next day after confirming Rule 1 again at around 3:20 PM only.

    Does this mean that trades based on TA (going long/short) can be executed only when the markets are about to close for the day?
    (I am not talking about trades that trigger when stop loss is breached or when the target is hit)

    • Karthik Rangappa says:

      Yes, especially if you are a risk-averse trader. Again, yes, this is to ensure you have a certain amount of confirmation before taking the trade, works well for the risk-averse trader. If you are a risk taker, then go ahead and initiate the trade much earlier (as explained in the chapter).

  172. bharadwaj says:

    Can you please explain the checklist with Infy’s current position (Friday, April 20) as an example? Going by what I understood, the stock is on the rise.
    1. No clear discussed pattern.
    2. Stock is at resistance level of the last 2 months
    3. Large volume with a steep price increase

    2 and contradict each other. Which of them gets a higher weightage? (Ignoring all other checklist items that are yet to be discussed)

    • Karthik Rangappa says:

      1) Perhaps there is a subtle breakout from a range?
      2) Hmm, sort of but I think its kind of breaking out of the resistance level
      3) Quite typical of a range breakout.

      You will have to see how the trading pans out over the next 1-2 days to make a call on this.

  173. Mehul Patel says:

    What percentage of average volume (10Day/15Day/20Day) should be considered institutional volume/trade on 1min or 2 min chart. E.g. If ACC has 20Day average volume of 300,000 shares and is trading at 1500 and there was a trade between 10:00 AM & 10:02 AM with the volume of 6000 shares which is 2 % of average volume and produces turn over of around 1 Crore, should it be considered institutional? If not, what should be the percentage of average volume which is considered institutional?

    • Karthik Rangappa says:

      Quite tricky but yes, anything more than twice or thrice the average volume can be considered high, although tough to call it institutional.

  174. siddhartth says:

    Dear sir,
    Like we have volume indicator chart or screener.
    is there a screener or indicator that shows number of order .
    example volume might be 3 lac traded today but order screener will show it might be just 30 orders that trader today .

    • Karthik Rangappa says:

      No, I don’t think this information is published anywhere. However, I need to double check this.

  175. Hiten says:

    sir how to draw a moving average line in volume bar

  176. Charan says:

    Hi Sir,

    As you have explained, Volume traded is equal to the amount of buying and selling of shares in a day.
    Could you please explain this in the context of ONLY BUYER and ONLY SELLER situation.

    If there is ‘only buyer’, then who sells the share? and vice versa.

    thank you

    • Karthik Rangappa says:

      A trade is considered done only when the price matches between the buyer and seller. Given this, it is in the context of both buyers and sellers.

  177. rabindra says:

    Hello Karthik,
    Are the big institutional traders always long term traders? What if these big traders are trying to make money through scalping. We the retail investors would be under the false guise of an uptrend at a time when these big traders are offloading and a false sense of a downtrend when they are buying coupled with the fact that there is always a time gap between what they are doing vis a vis what a retail trader would be doing. Correct me pl if I am wrong.

    • Karthik Rangappa says:

      In general, most of them come with ‘patient capital’, which is meant for long-term investing. However, there are institutions which trade actively. By the way, there is no way to ascertain what these guys are doing. Volumes, like I have mentioned in the chapter is only an indication of what is happening, that too when associated with price.

  178. Mukul says:

    Does Zerodha provide Volume at Price (VAP) bars ?

  179. rabindra says:

    Hello Karthik,
    Is there any way to depict the delivery percentages out of total volume traded(any time period) either in kite or pi. Plus an imposing MA of the delivery figures.

  180. Ritesh Lakra says:

    Hi Karthik,
    sometimes I see volumes in 2s. I mean in Zerodha Kite candlestick charts, there are volumes in M (million), K (Thousand) and are in 2. What does 2 mean?

  181. Chanu says:

    What if a person purchase a share at Rs100 and it moved to Rs 105 for intraday trading and wants to sell now at 105, but unable to get a seller and price drop around 103? What will happen now?

    • Karthik Rangappa says:

      Well, in this case, you missed the opportunity to sell due to lack of liquidity, hopefully, you get an exit @ 103. 🙂

      • Chanu says:

        This happens rarely or its common situation?
        how to avoid this?

        • Karthik Rangappa says:

          Liquidity is a real issue. This does not happen with Nifty 50 stocks, but outside the Index universe, there could be stocks which have really low liquidity.

  182. shishir kumad das says:

    kartik ji
    do fund manager of any mutual fund do intraday ?
    if so then can we trade those stock daily becoz those stocks are choosen by fund manager ?
    sir which fund’s share traded daily
    debt fund
    liquid fund
    equity fund
    arbitrage fund
    from which fund portfolio we can pick the stock for intraday.
    kartik ji thank you.

  183. CHIDAMBARAM V says:

    Hi Sir,
    1.In what way bulk and block deal affect the volume of a stock in a day?
    2.I have read somewhere that the Bulk deal take place in normal window and so it will affect the volume and price of the stock in a day.Is it true?
    3.Block deal take place in a separate window and so it doesn’t affect the volume and price of a stock in anyway.Is it correct?
    4.If so is block deals are more like a trades ( intra day and swing trades) between HNI ,FII and DII and Bulk deals are like investment made by HNI,DII and FII?
    5.What is the difference between FII and FPI ? Is FPI is a single person, whereas FFI is a institution?

    • Karthik Rangappa says:

      1) These are off-market transactions but under the regulator’s purview. So does not really affect the price during market
      2) No
      3) Yes
      4) Not necessary, the difference is in the volume/value of the trade
      5) FII in now called an FPI.

  184. Viraj says:

    Is there any way to segregate Retail & Institutional Trading Volume on Kite or Pi?

  185. Apurva Anil Kunkulol says:

    Hi Karthik Sir,
    In a recent chart of IDEA I saw that the candlestick for a particular session was red, however, the volume candle was green.
    If the opening price > closing price then already there’s more selling than buying, right, and the volume candle shows that buying is more. So how to decipher this?


    • The colour of the volume bar is green if the closing price of the candle is higher than the previous candle’s closing price and red if it is lower than the previous candle’s closing price

  186. Henjun says:

    Hello Karthik,
    I. Have.a Doubt. Regarding. The. Purchase. Of. Shares. By. Institutional. Investors. You. Are. Saying. That we can identify. Institutional. Investors by. Looking. At. Volumes. But. Can’t they hide. Thier activity in. Any. Way so. That their. Buy /. Sale is. Not. Reflected in market?

  187. Ajinkya Sawrikar says:

    “For a long trade, the low of the pattern should be around the support
    For a short trade, the high of the pattern should be around the resistance”

    Could you please elaborate this statement ?

    • Karthik Rangappa says:

      Each CS pattern comes with an inbuilt stop-loss mechanism. For a bullish candle, the stop loss is the low of the candle. For a bearish candle, the high of the candle is the SL.

  188. RAHUL KAUSHIK says:

    How to add 10 day volume average in the kite. As in Moving average volume option is not in kite

  189. Krishna Preetish says:

    Hi Sir how do we exactly know which side of the transaction are the institutional buyers in case of high volumes i mean do we just see the trend and support/resistance bands to recognize it also I have read that retail investors react to news shocks pretty well and this creates huge volumes involving institutional buyers to be on opposite side of the transaction(by opposite side i mean if it’s a bull with higher volume institutional traders might be selling or going short on the stock) (since institutional buyers are more bayesian and rely on fundamentals than retail buyers who react to news very easily and involve in trading )

    • Karthik Rangappa says:

      Yes, eventually the support and resistance levels show the price action, but unfortunately, the volumes alone does not convey which side of the trade the institutional investor is on. You need to infer this by associating it with the price.

  190. Anil says:

    I am confused a bit here

    How would you know that there are no meaningful purchase by institutional investors?
    Simple, if they were buying then the volumes would have increased and not decrease

    If institutional investors were buying, then is it not possible that volumn decreases (as there might not be enough supply)?
    Please comment.

    • Karthik Rangappa says:

      But the volumes will reflect this anyway, the assumption is that the institutional investors will but in greater volume, which will eventually show up.

  191. Yusuf says:

    Volume bars are presented in green and red on zerodha kite. I have noticed that it does not always match the color of the day’s candle. What does the color of volume bars signify ?

  192. Vinod Kumar says:

    2 doubts
    1. Can I use exponential moving average for volume, will it add acccuracy for my trade set up
    2. In Kite I am able to draw SMA for volumes but not able to figure out in pi.

    thanks in advance

    • Karthik Rangappa says:

      1) Yes, you can. I personally prefer SMA 🙂
      2) I’d suggest you speak to our support desk for this, they will help you.

  193. Vidur Saini says:

    Hi Sir,

    I have a question about the volumes in the Futures market. In the spot market, 1K volume means 1000 shares have been traded.
    In the example, let’s say a stock in the future’s market has a lot size of 1,000. What does 1K volume in the futures market mean for the stock?

    Is a single lot of the stock traded or are there 1,000 lots traded?

    I hope the question is clear.
    I was a little confused so thought it was better to clear out the doubt.

    • Karthik Rangappa says:

      The volumes are reported as multiples of single shares, hence you will have to divide this by the lot size to get the future volume.

  194. vansh says:

    how can volume decrease ?( if it is cumulative )
    if someone is selling then isnt that obvious that someone is buying so how can the volume decrease?

    • Karthik Rangappa says:

      Volume is cumulative, cant decrease during the day. However, you can compare today’s volume with y’day to get a sense of where the volume is.

  195. Apurva Anil Kunkulol says:

    Hi Karthik Sir,

    Today, on the AdaniPorts chart, there was a candlestick, open and close and the difference between the two was that of Rs. 2.45 however, strangely, the volume showed zero. Does this mean that trading in that particular stock didn’t happen for the day? How can the volume be 0 and still there would be a formed candlestick?


  196. Viswajith says:


    How to draw the last 10 days average volume line in the volume panel in PI software?

    • Open the chart and select the Day timeframe.
      Under Study, select Simple Moving Average. In the popup menu that will open up, under Source, select Volume from the drop down.
      Once the average line is added to the chart(replacing the candles). Click on the line and drag it to the Volume panel.

  197. Girish says:

    Karthik sir,

    Sometimes in nifty option pe/ce, Price decrease with Volume decrease, weak hand selling but pe/ce Rs.225 to came Rs.25.

    My question is: Price decrease with volume decrease means bearish ?

  198. Manish says:

    Hi sir,
    can you please tell me where to find volume price table in kite.


  199. Shyam says:

    Hello Sir,

    Please see below link

    Here if you look at the bid ask qty for hdfc bank it is insane. I mean sellers are almost 12 lacs and buyers just 1.7 lacs.

    Though sellers were huge the stock didnt fall that much as i was expecting but bank nifty did fall after 2.30 pm.

    Does this mean traders have initiated shorts in hdfc and so we can expect more fall in bank nifty in coming days?

    • Karthik Rangappa says:

      Shyam, the bid-ask that you see is quite transitory and changes every second. I would not consider this very seriously unless you are looking at scalping, where liquidity really matters.

  200. Apurva Anil Kunkulol says:

    Hi Karthik Sir,
    Sometimes in charts, we see a considerable difference between open and close, but the volume candle is short and conversely,
    the difference in open and close is small but the volume candle is high as shown in the screenshot below. So how does this phenomenon take place and how to comprehend it?
    I have highlighted the candles.



    • Karthik Rangappa says:

      Think about this, stock open at 100, and I place a sell at 105 and a buyer comes in to buy this. No other trade happens after this. In this case Open is 100, Close is 105, vol is 1. Likewise imagine open @ 100, close @ 101 but lots of ppl buying and selling. This form a short candle, but tons of volume.

  201. Ankit says:

    Sir, there is a section ‘Total’ given beneath bid and offer section. That represents the total buy quantity and the total sell quantity I believe. So as per my understanding, whenever the selling quantity is more there should be more of a selling pressure on the share and its price should fall while if the bid total i.e. buying quantity request is more then there should be buying pressure on stock and its price should rise. But this doesn’t always hold true. Please let me know the reason for it.

    • Karthik Rangappa says:

      Remember, these are just order placed, does not mean they will get executed. I can place an order to buy a million shares, but in the market, only 100 shares are available on offer, then I will get 100 shares and 9,99,900 shares will remain pending!

  202. shyam says:

    Hi Sir,

    can we say that bid volume is buying volume and ask volume is selling volume?

  203. Kartik Akolekar says:

    Hi Sir,
    How to put moving average line on the volume bar as everytime I select MA its gets drawn on the candle sticks. ?

    Thanks. 🙂

  204. Vivek singh says:

    In in kite platform inside market depth.. There is showing bid and offers… If in any stock bids quantity is increasing.. Say its double the offer quantitie… Inspite of this stock price is not going up. Rather going down… Why sir… Does demand and supply theory doesn’t work in stock market….. Price of stock should go up Na… If bid quantity is greater… Plzz reply sir… This is a heavy confusion

    Plzz reply sir

  205. Amey says:

    Hi Karthik!

    Volume increases when quantity is traded i.e. for every buyer, there is a seller. So if volume increases with increase in price, won’t it also mean that an institution is selling (since for each buyer, there is a seller)? In fact, it might also be the case the retail investors are showing sudden interest and an institution is quenching that thirst of retail investors, so smart money might in fact be selling.

    How do you differentiate between institutional buying and selling since both have high volumes?

    Also, if an institution is building a position since last 10 days, then the 10 days average would automatically be higher. This would distort the average and subsequent actions. How to go about it?


    • Karthik Rangappa says:

      If the whole thing is backed by volumes, then yes, institutional investors are involved. However, its hard to figure out which side they are on unless you take cues from the price.

      Yes, you also need to see the aggregate position in the stock, maybe over the last few days to figure out how the institution is building the position.

  206. Hitesh Vaishnav says:

    Hello Friends,
    Candle is big with low volume bar and another candle is small but has a big volume bar both are green candles.
    what does it mean and how to read whether it is a fresh position building or people are clearing position?

    • Karthik Rangappa says:

      The 2nd candle may have a bulk/block deal which is an off-market transaction, wont really affect the price, but the volumes will shoot up.

  207. Jitender says:

    Hello… Is there any way that we can put filter w. R. T volune
    Like stocks with today’s volume greater than 10 days avg. Volume

  208. Sangita Mahajan says:

    Where we check the volume of shares & their prices of specific co.

  209. Naveenkumar says:

    Greetings to the varsity team to make complicated things in a simplified manner, the level of simplification is awesome. i am a fresher in the market it is easy to read the market jargons as the order of your contents, Thanks again zerodha team.

    Today while reading about volume and its comments i have one doubt, clearly understood the volume color will be green if the price close above the previous day and vice versa, So what will the be color of volume bar on the very first day ? i noticed some of the stocks ,everything is in green bar., So my question is how it would be green? because there is no comparison of yesterday. Plz expalin.

    • Karthik Rangappa says:

      I never thought about what would be the colour of the volume bar on the first day, maybe its set to green as default 🙂
      Where have you observed only green volume bars? Is this in Kite? Can you please share the scrip name? Thanks.

      • Naveenkumar says:

        yes sir, i am using kite only, go thorough the TCS, BHARTI AIRTEL, and BATA INDIA stocks on a Daily time frame., on the very first day the color of volume bar is green only even if the script made a red candle. thats why i was asking why it is in green color?

  210. Amrut says:

    In volumes, given in charts of Zerodha, some are green bars and some are red bars. What does that indicate? Help me with this.

  211. Sumon saha says:

    Thanks a lot sir.
    Is it possible to translate varsity by zerodha whole blog in Bengali language?

  212. sunil says:

    Hi Sir,
    In this chapter u mentioned that while we go for long or short, we must confirm the volume . It should be above 10 day average.
    For this we can use moving average.but while we use moving average it shows in candle chart and not in volume can we see that today volume is higher then 10 days average volume.

    • Karthik Rangappa says:

      Sunil, to do this, when you load the volume, select the field as volume. When you do so, the moving average will appear directly on the volumes.

  213. karthik says:

    We request u zerodha to introduce on chart trading,,,
    Placing orders with click of a mouse and adjusting stop loss, take profit, drag and dropping them with the mouse,,,

    We want trading easy,,,
    though we appreciate ur changes to logging in,,,
    Logging in made easy does not make winning trade,,,,
    The ease of placing orders do,,,

    • Karthik Rangappa says:

      I’m not sure what you are reffering to, but I think Kite is probably the most user-friendly platform ever created. Is there any specific issue you face while trading?

  214. amit says:

    sir, how can i know the volume continuously up from two or three days in daily chart

  215. Rajendra says:

    Sir , Ref Kite – Volume profile on Y axis , right hand side – How to use it for trading . Also how it is calculated ? Does it change with time frame selected ? Also pl share any useful link that can be used for better understanding . Thanks

  216. Akhilesh Verma says:

    Can Volume traded in a day be greater than total number of shares of a company(that are there for trading) . Eg. suppose a company has 1 share. And this 1 share is traded. Person A holds this share currently, A sells this to B , then B to C, then C to D. Does Volume traded in this case be 1+1+1 = 3??

  217. Pandi says:

    Hi Karthik,

    Thanks for the content on volumes, they are very useful.
    I have a query on the big bars that are either bullish or bearish.
    Lets say there is a volume of 100k in one of the bullish bar, my understanding has been that the 100k volume is a combination of both buy and sell that has taken place.
    Is my understanding correct, if yes is there a way we can segregate out of the 100k how much buying and selling has happened, ex say 60k for green and 40k for red.


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