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Price & Volume

Volume

The total number of shares traded during a given period. High volume confirms price moves.

What is Volume?

Volume measures how many shares of a stock were bought and sold during a specific time period. It's one of the most fundamental indicators in trading.

Key volume concepts

  • Volume confirms trends: a price move on high volume is more significant than one on low volume
  • Relative volume: compare today's volume to the average to gauge unusual activity
  • Volume spikes: sudden volume increases often precede big moves
  • Climax volume: extremely high volume can signal exhaustion and a potential reversal

Related Terms

Breakout

When price moves above resistance or below support with increased volume, signaling a potential new trend.

Dark Pool

Private exchanges where large institutional orders are executed away from public markets to avoid moving the price.

Relative Volume (RVOL)

Current volume compared to the average volume for the same time of day. RVOL > 2 signals unusual activity.

Relative Volume (RVOL)

A ratio comparing the current trading volume to the average volume over a lookback period, typically 10 or 20 days. An RVOL of 2.0 means twice the normal volume.

Time and Sales (Tape)

A real-time feed of every executed trade showing price, size, and time: the 'tape' that tape readers watch.

VWAP

Volume Weighted Average Price: the average price weighted by volume throughout the trading day.