What confirms major price moves in the market?

Volume is a critical indicator that confirms major price moves in the market because it reflects the strength and enthusiasm behind a price movement. When prices move significantly, whether upward or downward, the accompanying volume can provide insight into the sustainability of that move. High volume suggests strong buyer or seller interest, indicating that the move may continue. Conversely, low volume could imply a lack of conviction in the price movement, raising the possibility of a reversal.

For example, if a stock price surges but the volume remains low, it may be a sign that the move is not backed by significant interest and could be short-lived. Therefore, volume plays a vital role in validating price trends and ensuring that market participants can assess the likelihood of a sustained movement.

Thus, while factors like investor sentiment, news headlines, and government policy changes can influence market conditions, they do not provide the direct confirmation of price movements that volume does.