Volume usually goes with the trend; that is, volume advances with a rising trend of prices and falls with a declining one. This is a normal relationship, and anything that diverges from this characteristic should be considered a warning sign that the prevailing price trend may be in the process of reversing.

Volume represent the number of units of an asset (such as shares or contracts) that changes hands during a specific period. Normally the volume from the breakout  is high, it is relatively lower than that which accompanied the price move. In relation to the overall cycle, this is a bearish factor.

Following the sharp price rise from the rectangle, enthusiasm dies down as prices correct in a sideways movement and volume contracts. This is a perfectly normal relationship, since volume is correcting (declining) with price. Eventually, volume and price expand together, and the primary upward trend is once again confirmed. Finally, the buyers become exhausted, and the price forms yet another rectangle characterized, as before, by falling volume, but this time destined to become a reversal pattern.

Volume contracts throughout the formation of rectangle and expands as prices break out on the downside. This expanded level of activity associated with the violation of support at the lower boundary of the rectangle emphasizes the bearish nature of the breakout, although expanding volume is not a prerequisite for a valid signal with downside breakouts, as it is for an upside move. Following the downside breakout, more often than not, prices will reverse and put on a small recovery or retracement rally. This advance is invariably accompanied by declining volume, which itself reinforces the bearish indications. It is halted at the lower end of the rectangle, which now becomes an area of resistance.