| Trading volume – the number of shares of a security traded in a given day or other period – has long served as a proxy for market demand. For many traders, volume is used as a confirmation indicator to price movement. An increasing price level but a decreasing volume level may indicate that demand for that security has dried up, and that the price may soon decline.
On the other hand, a stock that breaks out of its price range on higher than average volume may indicate a higher degree of interest and probability of the demand trend continuing...............................................Full Article: Source
|