Volume

Dictionary Says

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 Says

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.

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Articles Of Interest

  1. Dow Theory: Volume Must Confirm The Trend

    Volume is used as a secondary indicator to confirm the price movement in Dow theory.
  2. Confirming Price Movements With Volume Oscillators

    Use this indicator to validate a change in price direction and moving averages.
  3. 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.
  4. Gauging Support And Resistance With Price By Volume

    This straightforward histogram can help you analyze the buying and selling interest in a stock.
  5. 3 Technical Tools To Improve Your Trading

    Find out how volume, the Aroon indicator and Fibonacci numbers can improve your profits.
  6. 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.
  7. Why are the bid and ask quotes usually so far away from each other in after-hours trading?

  8. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  9. Triple Screen Trading System - Part 4

    How can a trader use the Elder-Ray oscillator as the second screen of this system? Find out here.
  10. Triple Screen Trading System - Part 3

    Learn about market wave, the second screen in this three-part system.

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