Volume
Volume is a term used to describe the amount of units traded in a particular stock, future, commodity, or any security that has its own price series.
It’s a significant indicator because it helps us to understand the levels of demand and supply in a particular security. Falling prices are generally an indication of reduced demand for a stock and vice versa. Using a volume bar chart, you can start to make other interpretations as well. In general, a move may not last too long if there’s no decent volume to go with it. On the other hand, where a move is accompanied by high and increasing volume, the move is more likely to be one that is sustainable. Volume makes prices move.
Diagram 4.8.1. Volume and price patterns.
Volume Climaxes ...
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