Volume Dry-Up

Volume dry-up means the average volume during a stock's consolidation has fallen meaningfully below its longer-term average — typically <70% of the 50-day average volume in the last 10 trading days.

This is a positive sign before a breakout:

• Few sellers remain — most of the supply that was overhanging has been absorbed.
• Institutional holders are content to sit on positions and not trim.
• The next sign of demand (a breakout day with volume expansion) faces little resistance.

The "dry-up then expansion" sequence

The textbook breakout sequence is: weeks of consolidation with shrinking volume, then a single day of price moving above the pivot on ≥1.5× average volume (often 2×+ for the strongest setups). Swing Edge flags both halves separately — volume drying up in the base is part of the Pre-Breakout score; volume expansion on the breakout day is required for the Breakout scanner's "Strong" label.