What Is a Stopping Volume Pattern?
Can heavy volume signal that a move is slowing down?
Stopping volume is a term some traders use when unusually high volume appears near the end of a directional move and price stops making meaningful progress.
Imagine NQ sells off sharply into a significant support area. Volume increases, but the market struggles to continue lower.
This could indicate that opposing buying interest is entering the market.
However, high volume near a low can also occur during a continuing sell-off.
I would look for evidence of stabilization, a change in price behavior, and a clearly defined invalidation point.
The important distinction is between a market that is merely trading heavily and one that is actually showing signs of a directional change.