What Is Volume? Meaning & Example
Definition
Volume is the number of shares, contracts or coins traded in a given period. Volume helps show how much participation and conviction sits behind a price move.
Related terms
Liquidity describes how easily an asset can be bought or sold quickly without greatly moving its price. Highly liquid markets have many buyers and sellers and tight spreads.
BreakoutA breakout happens when price moves decisively beyond a support or resistance level or out of a range. Breakouts on strong volume are often seen as more convincing.
Technical AnalysisTechnical analysis studies price charts, volume and indicators to look for patterns and trends. It focuses on market behavior rather than company finances.
What is Volume?
Volume is the number of shares, contracts or coins traded in a given period. Volume helps show how much participation and conviction sits behind a price move.
Can you give an example of Volume?
A stock that normally trades 1 million shares a day but trades 4 million on earnings day has unusually high volume.