When a stock takes off or breaks out of a bullish formation you must have a 50% or more increase in volume to validate the move. This works just like the thrusters on the space shuttle. The greater the volume, the greater the thrust to propel a stock higher! You always want to see that surge of buying in a stock. It validates your opinion that it is a stock you want to own because it obvious that everyone else wants to own it too. This upward movement on increased volume creates momentum which pushes the stock high and in turn brings in more buyers.

The same holds true for the market. The only way to confirm if the price action you are seeing is real is to see if you have a huge increase in volume to confirm it.

According to Bill O