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It is part of her broader teaching on market structure, Auction Market Theory, and technical analysis.
Core Idea
Volume confirms price direction: Strong moves accompanied by high volume are more reliable than those on low volume.
Volume precedes price: A sudden surge in trading activity often signals that price will follow with a breakout or breakdown.
Auction Market Theory: Raschke emphasizes that Price + Time + Volume = Value. Markets probe higher to attract sellers and lower to attract buyers, with volume showing where consensus “value” is established.
Key Concepts Linda Raschke Teaches
Breakouts and Volume
A breakout with high volume suggests institutional participation and conviction.
A breakout with low volume may be a false move or “fake‑out.”
Trend Continuation
Rising prices with rising volume = strong trend.
Rising prices with falling volume = weakening trend, possible reversal.
Reversals
Spikes in volume at support/resistance zones often mark turning points.
Exhaustion volume (very high volume at the end of a move) can signal trend exhaustion.
Practical Application