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<p>Volume represents the total number of securities traded during a certain period of time. How the volume is moving will show how much interest of investors have in the particular stock. Looking at volume patterns over time one can get a sense of the strength in price movement in specific stocks and entire markets.</p>
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<p>Volume is a crucial element of trading. Volume combined with Price Action is what matters the most for an active trader. Every other indicator is just a derivative of these two.</p>
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<p id="isPasted">It is for a few reasons that I believe. Firstly because of general liquidity for the equity that you're trading. We all want to know that when we buy and sell, the volumes are sufficient enough to help ensure us order fill success in the least amount time with the least price slippage.</p><p>Second to me is the trading action. Essentially what's the majority trading attitude in that particular equity issue in that specific day. When we can see and know what normal volumes are then we can quickly assess any significant changes. Then look for why before taking our …</p>
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<p>Volume is one of the most important technical indicators in trading. Any breakout or breakdown if supported by volumes has high probability of being materialized. For a trend to continue one needs to focus on volumes as it acts as a fuel.</p>
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