13 Volume Indicators

Volume is the number of shares traded at a given point in time.

Volume by itself, can at times provide signals of price movement. For instance, you see a peak in price but volume is going down. Basically, there is not motivation in the stock. You can expect prices to fall (see image below)

If you see a major spike in volume, that means the stock will be moving, and could mark the start of a trend.

You should think of volume as the fuel or treasures that runs the battles by the longers and shorters.

Figure 13.1: Volume

There is a set of indicators that provide important signals as the relate to volume…lets check some of them.