Price action moves in waves, it is also very supportive if the volume for each wave does not conflict with price action.
Below we see CAT creating a step up formation, volume on the up step (wave) is greater than the down step, this means folks who brought this stock are not selling, they are holding on. Very Bullish. Of course stock fundamentals, sector and wider market studies are required before any buying is done.
readtheticker.com Volume Wave quick chart
.."If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole"..
- Jesse Livermore Trading Rule