--- title: Volume and Trend Confirmation in Stock Market Technical Analysis description: Understand the role of volume in trend confirmation through VN-Index on 08/11/2023 and methods to avoid low-liquidity breakout traps on HOSE. url: https://ginity.vn/en/blog/volume-and-trend-confirmation canonical: https://ginity.vn/en/blog/volume-and-trend-confirmation markdown: https://ginity.vn/en/blog/volume-and-trend-confirmation.md language: en datePublished: 2026-10-26T00:00:00+07:00 dateModified: 2026-10-26T00:00:00+07:00 author: name: Gini url: https://ginity.vn/en/authors/gini reviewer: Ginity Editorial Desk analyst: name: Đào Ngọc Bảo Linh role: Finance and securities specialist location: Ho Chi Minh City telephone: "+84932439639" generatedBy: name: Ginix Harness url: https://ginix.vn desk: id: learn name: Learn investing url: https://ginity.vn/en/learn tickers: - VNINDEX - HPG - SSI sources: - name: Ho Chi Minh Stock Exchange (HOSE) url: https://www.hsx.vn/vi/van-ban-phap-quy/quy-che title: HOSE Trading Regulations and Operating Guidelines - name: Vietnam Exchange (VNX) url: https://vnx.vn/vi/van-ban-phap-ly/6 title: VNX Equity Trading Regulations Across Subsidiary Exchanges - name: Vietnam Securities Depository and Clearing Corporation (VSDC) url: https://vsdc.vn/sd/XAz40d2Q-9j569TvBgLQaQ title: Regulations on Clearing and Settlement Operations - name: Ho Chi Minh Stock Exchange (HOSE) url: https://www.hsx.vn/vi/du-lieu-giao-dich/quy-mo-giao-dich title: Trading Scale and Volume Data for Listed Equities - name: VnEconomy url: https://vneconomy.vn/thi-truong-bung-no-84-co-phieu-kich-tran-vn-index-tang-hon-3.htm title: Market Surges as 84 Stocks Hit Ceiling and VN-Index Rises Over 3% publisher: Ginity attribution: 'Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content.' disclaimer: "Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources." usageTerms: https://ginity.vn/ai.txt --- # Volume and Trend Confirmation in Stock Market Technical Analysis > Understand the role of volume in trend confirmation through VN-Index on 08/11/2023 and methods to avoid low-liquidity breakout traps on HOSE. Gini · Learn investing · 2026-10-26 · https://ginity.vn/en/blog/volume-and-trend-confirmation _Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_ ## Key takeaways - Matched volume reflects real capital commitment; the 08/11/2023 session recorded 952 million shares on HOSE valued at 18,600 billion VND. - Trend alignment emerged as VN-Index gained 33.14 points (or 3.07%) alongside combined bourse turnover jumping 60% compared to the prior day. - The distribution day on 18/08/2023 on 1.64 billion shares and 36,145 billion VND confirmed a downtrend as VN-Index shed 55.49 points (or 4.50%). - HOSE 7% daily price bands and T+2 settlement subject unconfirmed breakouts to reversal risk before the shares reach the account. ## The structural role of volume in trend confirmation While open, high, low, and close prices reflect fleeting consensus on valuation, [trading volume](/en/glossary/trading-volume) measures the financial commitment behind the move. In technical analysis, price movement commands credibility only when supported by commensurate turnover. Combining price and volume enables analysts to distinguish between sustainable swings and erratic noise in the [market](/en/markets). Under the Regulation on listing and trading of listed securities issued with Decision 22/QD-HDTV dated 16/03/2026 of VNX (See the full text at [Vietnam Exchange (VNX), Regulations section](https://vnx.vn/vi/van-ban-phap-ly/6)), published volume is categorized into round-lot automated matching (minimum 100 shares per order) and put-through arrangements. When examining a [trend](/en/glossary/trend), analysts prioritize continuous automated matching because it reflects real-time clashes between active supply and demand. Under classical Dow Theory, volume must expand in the direction of the primary trend. In a healthy uptrend, turnover expands on rising days and contracts during corrective pullbacks. Conversely, in a downtrend, heavy liquidation triggers volume spikes, whereas technical rallies unfold on anemic activity. Following the lesson on [basic candlestick patterns](/en/blog/basic-candlestick-patterns), cross-referencing candle formations with underlying volume bars serves as standard procedure for validating reversal structures. ## Measuring and comparing volume against historical price swings According to standard technical analysis methodology, analysts compare current volume against its 20-session moving average (MA20 Volume) to assess conviction. A session where [liquidity](/en/glossary/liquidity) exceeds 130% to 150% of its MA20 level typically signifies institutional participation. According to reporting from VnEconomy (See the full text at [VnEconomy](https://vneconomy.vn/thi-truong-bung-no-84-co-phieu-kich-tran-vn-index-tang-hon-3.htm)) and HOSE trading summaries, the session of 08/11/2023 illustrated robust price-volume alignment. After consolidating near 1,080 points, the VN-Index climbed 33.14 points (or 3.07%) on 08/11/2023 to settle at 1,113.43 points. Accompanying this move was a surge in activity: HOSE automated volume reached 952 million shares worth 18,600 billion VND, propelling total market turnover beyond 21,500 billion VND, up 60% compared to the prior session (which saw 12,600 billion VND on 07/11/2023). HOSE breadth favored gainers decisively, with 495 advancing symbols (including 84 ceiling hits) against 65 decliners. | Trading Date | VN-Index Level | Point Change | Percentage Change | HOSE Matched Volume | HOSE Matched Turnover | Volume Relative to MA20 | | --- | --- | --- | --- | --- | --- | --- | | 18/08/2023 | 1,177.99 points | -55.49 points | -4.50% | 1.64 billion shares | 36,145 billion VND | 210% of MA20 (Heavy distribution) | | 21/08/2023 | 1,179.76 points | +1.77 points | +0.15% | 882 million shares | 18,200 billion VND | 15% below MA20 (Technical bounce) | | 07/11/2023 | 1,080.29 points | -9.37 points | -0.86% | 610 million shares | 12,600 billion VND | 25% below MA20 (Selling exhaustion) | | 08/11/2023 | 1,113.43 points | +33.14 points | +3.07% | 952 million shares | 18,600 billion VND | 145% of MA20 (Trend confirmation) | *Source: Ho Chi Minh Stock Exchange (HOSE) and VnEconomy trading statistics 2023.* In stark contrast to 08/11/2023, the session on 18/08/2023 illustrated volume confirming a severe downward break. According to official HOSE data (See the full text at [HOSE Trading Scale](https://www.hsx.vn/vi/du-lieu-giao-dich/quy-mo-giao-dich)), on 18/08/2023, the VN-Index dropped 55.49 points (or 4.50%) to 1,177.99 points. On the same date of 18/08/2023, matched volume on HOSE reached 1.64 billion shares valued at 36,145 billion VND, confirming widespread institutional distribution. ## Three common pitfalls when interpreting trading volume The first pitfall is labeling a session a genuine [breakout](/en/glossary/breakout) without accompanying volume expansion. According to HOSE trading rules, with daily 7% price limits effective since 2023, an equity can reach its daily ceiling in morning trade on speculative enthusiasm. However, if total session volume lags its 20-day average, the breakout carries high vulnerability to a bull trap. Under Decision 39/QD-HDTV dated 29/04/2025 issued by the Board of Directors of VSDC (See the full text at [Vietnam Securities Depository and Clearing Corporation (VSDC)](https://vsdc.vn/sd/XAz40d2Q-9j569TvBgLQaQ)), settlement in Vietnam follows a T+2 timeline, meaning purchased shares become accessible on the second business day after the trade date. Entering low-volume breakouts exposes market participants to steep reversals before shares can be liquidated. According to HOSE statistical bulletins in 2023, the second pitfall is failing to strip out put-through transactions when evaluating trend strength. Put-through transfers typically reflect internal reallocations among major shareholders or fund rebalancing negotiated privately off the continuous matching engine. In 2023, conflating 3,000 to 5,000 billion VND in daily put-through trades with automated turnover creates artificial liquidity readings. The third pitfall is ignoring calendar seasonality and quarterly ETF rebalancing cycles. During the third week of March, June, September, and December, index-tracking ETFs execute scheduled adjustments during the ATC auction under VNX regulatory oversight (See the full text at [Vietnam Exchange (VNX)](https://vnx.vn/vi/van-ban-phap-ly/6)). Sudden volume spikes in the final 15 minutes stem from mechanical portfolio alignment rather than proactive market momentum. ## Primary sources for volume statistics and trade execution logs To ensure accuracy in volume analysis within Vietnamese equities, accessing primary data from market infrastructure operators is essential: 1. HOSE Statistical Reports (See the full text at [HOSE Trading Scale](https://www.hsx.vn/vi/du-lieu-giao-dich/quy-mo-giao-dich)): Provides comprehensive daily session reports separating continuous automated matching, call auctions, and put-through trades across individual tickers. 2. VSDC Depository Data (See the full text at [VSDC Clearing and Settlement](https://vsdc.vn/sd/XAz40d2Q-9j569TvBgLQaQ)): Discloses free-float figures and foreign ownership limits, allowing analysts to gauge turnover against tradeable share supply. 3. VNX Regulatory Portal (See the full text at [VNX Legal Documents](https://vnx.vn/vi/van-ban-phap-ly/6)): Publishes unified trading guidelines and index governance manuals. Readers can independently verify volume metrics through the following procedures on official portals: 1. HOSE Disclosure Portal at `https://www.hsx.vn/vi/tin-tuc/cong-bo-thong-tin`: Open "Trading Data", enter dates such as 08/11/2023 or 18/08/2023, and inspect matched volume and total traded values. 2. VSDC Portal at `https://vsdc.vn/vi/lel/6`: Review clearing and settlement regulations, or navigate to services at `https://vsdc.vn/sd/XAz40d2Q-9j569TvBgLQaQ` to confirm T+2 settlement allocation at 13:00 on the second trading day. 3. VNX Legal Portal at `https://vnx.vn/vi/van-ban-phap-ly/6`: Consult market surveillance guidelines and periodic index rebalancing schedules to interpret ATC turnover spikes. Mastering volume dynamics equips learners with empirical grounding, preparing for the next lesson on [moving averages](/en/blog/moving-averages) in the [Technical analysis & candlesticks](/en/learn/technical-analysis) curriculum. ## Sources - Ho Chi Minh Stock Exchange: [HOSE Trading Regulations and Operating Guidelines](https://www.hsx.vn/vi/van-ban-phap-quy/quy-che) (28/10/2016) - Vietnam Exchange: [VNX Equity Trading Regulations Across Subsidiary Exchanges](https://vnx.vn/vi/van-ban-phap-ly/6) (31/03/2023) - Vietnam Securities Depository and Clearing Corporation: [Regulations on Clearing and Settlement Operations](https://vsdc.vn/sd/XAz40d2Q-9j569TvBgLQaQ) (29/04/2025) - Ho Chi Minh Stock Exchange: [Trading Scale and Volume Data for Listed Equities](https://www.hsx.vn/vi/du-lieu-giao-dich/quy-mo-giao-dich) (08/11/2023) - VnEconomy: [Market Surges as 84 Stocks Hit Ceiling and VN-Index Rises Over 3%](https://vneconomy.vn/thi-truong-bung-no-84-co-phieu-kich-tran-vn-index-tang-hon-3.htm) (08/11/2023) --- _Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._ _Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._