Technical analysis
Volume
Volume is the number of shares traded over a period. It measures the interest and strength behind a price move.
Volume is the number of shares traded over a period. It measures the interest and strength behind a price move.
Volume counts how many units of an asset changed hands. A price move on heavy volume is considered more solid: many participants are behind it. The same move on light volume invites more caution.
Volume also gauges liquidity: a heavily traded asset is easy to buy and sell, with a tight spread. Unusually high volume often signals that important news has just come out.
A stock rising 5% on three times its average volume shows real conviction. The same rise on very light volume may be only a passing blip.
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