Volume

AAA

DEFINITION of 'Volume'

The number of shares or contracts traded in a security or an entire market during a given period of time. It is simply the amount of shares that trade hands from sellers to buyers as a measure of activity. If a buyer of a stock purchases 100 shares from a seller, then the volume for that period increases by 100 shares based on that transaction.

INVESTOPEDIA EXPLAINS 'Volume'

Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move.

VIDEO

RELATED TERMS
  1. On-Balance Volume (OBV)

    A momentum indicator that uses volume flow to predict changes ...
  2. Negative Volume Index - NVI

    A technical indicator that relies on changes in a security’s ...
  3. Net Volume

    A term in technical analysis that represents a security's uptick ...
  4. Positive Volume Index - PVI

    An indicator used in technical analysis that is based on days ...
  5. Down Volume

    A stock volume that closes at a price lower than the previous ...
  6. Equivolume

    A chart that compares price and volume and plots them together ...
Related Articles
  1. Trading Strategies

    How effective are double tops in spotting a change in the overall trend?

    Learn about the double top price chart pattern, a commonly appearing indicator used to establish resistance levels and possible trend reversals.
  2. Trading Strategies

    What are the main differences and similarities between Money Flow Index & On Balance Volume?

    Understand the basics of On Balance Volume and the Money Flow Index, including their similarities and differences in terms of calculation and use.
  3. Technical Indicators

    What is the Guppy Multiple Moving Average (GMMA) formula and how is it calculated?

    Find out how Australian trader Daryl Guppy designed a system of 12 separate moving averages to measure the relationship between traders and investors.
  4. Trading Strategies

    How effective is creating trade entries after spotting an Exhaustion Gap pattern?

    Understand the components of the exhaustion gap pattern, how and why it occurs, and how it can be used to create an effective trading strategy.
  5. Active Trading Fundamentals

    Confirming Price Movements With Volume Oscillators

    Use this indicator to validate a change in price direction and moving averages.
  6. Active Trading

    3 Technical Tools To Improve Your Trading

    Find out how volume, the Aroon indicator and Fibonacci numbers can improve your profits.
  7. Active Trading Fundamentals

    Using Volume Rate Of Change To Confirm Trends

    Wise traders rely on indicators that show a trend in volume, because without supportive volume, a price movement has no conviction.
  8. Options & Futures

    How To Read The Market's Psychological State

    Discover what on-balance volume, accumulation/distribution and open interest can tell you about the market mood.
  9. Investing

    Why are the bid and ask quotes usually so far away from each other in after-hours trading?

    After-hours trading is defined as the exchange of securities outside of an exchange's specified regular trading hours (usually 9:30am to 4pm EST). After-hours trading occurs through an electronic ...
  10. Active Trading Fundamentals

    Gauging Support And Resistance With Price By Volume

    This straightforward histogram can help you analyze the buying and selling interest in a stock.

You May Also Like

Hot Definitions
  1. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  3. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  4. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  5. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  6. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
Trading Center