Trading Volume

Volume represents the total number of shares traded during a period. It's the most fundamental measure of market participation and conviction. Price moves on high volume carry more significance than moves on low volume.

• Volume confirms trends — Rising prices on rising volume = healthy uptrend.
• Breakout validation — A breakout on high volume is more likely to sustain than one on low volume.
• Relative Volume (RVOL) — Today's volume compared to average. RVOL > 2.0 indicates unusual activity.
• Volume Dry-Up — Declining volume into a move often precedes a reversal.
• On-Balance Volume (OBV) — Cumulative volume indicator that tracks buying vs selling pressure.