Trading Volume = number of shares traded in a period. Volume is the lifeblood of stock movement — confirms or denies price action.
📊 Key Concepts
- High Volume + Up Price: Strong bullish — institutional buying
- High Volume + Down Price: Strong bearish — institutional selling
- Low Volume + Up Price: Weak rally — likely to reverse
- Volume Breakout: 2x+ average volume = significant move
🎯 Indicators that use volume
- OBV (On Balance Volume)
- MFI (Money Flow Index) — RSI with volume
- VWAP (Volume Weighted Average Price)
- Accumulation/Distribution line