Introduction to Volume
An excerpt from our Academy Module.
Executive Summary: The "Why" and "What" of Trading Volume
Trading volume, simply put, represents the total number of shares or contracts traded for a particular security or market during a specified period. It is a powerful indicator used by traders to measure the strength or weakness of a price trend. The essence of understanding volume lies in recognizing the impact it has on price movements and market psychology.
Why is volume important? Volume acts as a fuel that drives the market e...