Compare Popular Online Brokers. The Securities and Exchange Commission has rules on counting volume.
Close dialog. But, when applied correctly it is can give the investor a huge advantage in obtaining profits. The Motley Fool has a disclosure policy.
Analysts use bar charts to quickly determine the level of volume. Your Money.
Some traders judge activity by total volume, especially as related to price. Sometimes when you think of high volume in the stock market, you think the price will be shooting up.
When Do Stocks Close? That is, if a security is continuing higher in an uptrend, the volume of the security should also increase and vice versa. The more recent the data sets, the more relevant they are likely to be.
Volume is an important indicator in technical analysis as it is used to measure the relative worth of a market move. By contrast, if everyone agrees that an appropriate stock price is significantly above the previous trade price, then the shares will rise in value quickly.
If volume increases when the price moves up or down, it is considered a price movement with strength. Personal Finance.
Popular posts. Let's conquer your financial goals together... Conversely, if traders are looking to confirm a break in the level of support, they look for high volume from buyers. Note the high selling volume and the down channel.
Rule Breakers High-growth stocks. Trading Trading Strategy.
The more excitement there is about a stock the more people will want to buy it. Other Calculations Some traders judge activity by total volume, especially as related to price.