Volume is a fundamental concept in trading and is a crucial indicator for market analysis. Traders and investors closely monitor volume as it provides valuable insights into the strength and direction of price movements. what is volume in trading ? In trading, volume refers to the total number of shares or contracts traded within a specified timeframe. It quantifies the level of activity and liquidity in the market. Volume is typically displayed as a vertical bar chart at the bottom of price charts, with each bar representing a specific period, such as a day, hour, or minute. Interpreting Volume: Confirmation of Price Movements: Volume acts as a confirmation tool for price movements. A surge in volume during an upward or downward trend indicates firm conviction among traders, affirming the validity of the price movement. Conversely, low volume during price fluctuations may suggest a lack of interest or uncertainty, potentially signalling a reversal or consolidation phase...
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