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What Is a “Volume-Price Divergence” and Why Is It a Warning Sign?

Price and volume trends moving opposite ways; e.g. rising price with falling volume, signaling a weak and unsustainable trend.
Greeks.Live28.10.25

What Is a “Volume-Price Divergence” and Why Is It a Warning Sign?

Volume-price divergence occurs when the price trend and the volume trend move in opposite directions. For example, if the price is making new highs (or higher lows in a bounce) but the volume is declining, it indicates that the upward movement lacks conviction.

This divergence is a strong warning that the current price trend is weak and likely to reverse soon.

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