IN PLAIN ENGLISH
Volume shows how many people were buying and selling on a given day. A price move on high volume is considered more significant and reliable than the same move on low volume. Big volume spikes often accompany major news events.
FULL DEFINITION
The total number of shares or contracts traded for a security during a given period, displayed as bars below the price chart.
EXAMPLE
A stock rises 5% on 10× its average daily volume — traders treat this as a strong, confirmed move. The same 5% rise on 0.3× average volume is viewed with skepticism because few participants were involved.
Educational content only. It is not personal financial advice.