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In the Stock chart there is a section where only purchases are noted, but the share loses value. My understanding so far has been that the stock would have to increase in value in this case.

enter image description here

What factors can cause a stock to lose value in such a case?

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    It's impossible to have only buyers and no sellers. You can not buy what someone else isn't selling. – xyious Oct 11 at 15:28
  • @Gene - The particular stock may have been trigger for the DVs (Down votes), but I can't be sure. I've edited out the stock name, leaving the intent of the question in tact. Welcome to Money.SE. – JTP - Apologise to Monica Oct 12 at 18:41
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I think you need to go back and reconsider your interpretation.

First, the volume is showing you the TOTAL volume. It is showing you "How much X has been traded over period Y".

The pretty green/red colours are derived data:

  • Green = Closing Price > Opening Price
  • Red = Closing Price < Opening Price
  • That makes a lot more sense, thanks! – Gene Oct 11 at 13:15
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The short answer is that:

  • Net excess buying volume pushes share price up

  • Net excess selling volume pushes share price down

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Looking at the japanese candles chart might also help. I believe that gaps could also explain why you see those volumes marked as green while you would probably expect them red. Anyhow my understanding is similar to what Bob Baerker says, price goes down when there is more offer than demand and goes up when there is more demand than offer.

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