Summary
Volume represents the total number of shares traded during a trading session. It shows how many shares changed hands between buyers and sellers.
Volume is one of the most commonly used measures of market activity.
Why it matters
Higher volume may suggest stronger investor interest and better liquidity. It can also confirm whether a price movement was supported by meaningful participation.
Low volume may indicate quieter trading or limited market interest.
How to Calculate
Volume = Total Number of Shares Traded During a Trading Session
How to read it
A price increase with high volume may suggest stronger buying interest. A price decrease with high volume may suggest stronger selling pressure.
Volume should be compared with average volume to determine whether the day’s activity was unusually high or low.