L6 - Industry Studies: ManufacturingReturn

Volume indicators are often combined with information about stock prices development. Technical analysts use trading volume as a support tool to confirm trend directions. I focused on the Warsaw Stock Exchange that is one of the most dynamically growing capital markets in Europe and I tried to detect if trading volume can be used as a support tool the technical analysis on this stock market. Data of 67 companies was analysed in 2008 - 2018 using the Granger causality. The findings show, both the correlation and the Granger causality was determined in most cases for investment sector and real estate sector that could be caused, for example by higher share on GDP of these sectors in comparison with other analysed industries, market position of companies, and by interest of investors. However, it seems trading volume as a support tool of the technical analysis is more relevant on more developed and high liquidity markets.