I believe volume is useless in determining direction of a trend. All the adages incorporating volume, high volume indicates continuation of trend etc. are just useless! This rally happened on low volume, yet it continued! Maybe there's a usefull component of volume in super high frequency scalping, but I don't know where. Volume at best is just a gauge for volatility. High volume is more activity is higher volatility. If you look at charts higher volume usually indicates higher downside volatility. But it can't be used for trend analysis! Another technical analysis myth busted!