A Key Indicator for Investors
What Is Volume?
Volume is the amount of an asset or security that changes hands over a set period, often within a trading day. In stock markets, it reflects the total number of shares traded from the opening to closing of the market.
This measure is vital for technical traders as it provides significant insights into market activity and liquidity. For instance, a stock’s trading volume refers to the number of shares traded between its daily open and close. Trading volume, and changes in volume over the course of time, are important inputs for technical traders.
Key Takeaways
- Volume indicates the total number of shares or contracts traded in an asset or security over a specified period, often during a single trading day.
- High…