Trading volume counts how many shares change hands in a period. It is the conviction behind a price move — a rally on heavy volume means business, while one on thin volume can melt away just as fast.
Trading volume is the total number of shares of a stock traded over a period — a minute, an hour, or a full day. It is usually drawn as bars beneath the price chart. Volume measures activity: how many traders cared enough to buy or sell in that window.
Price tells you the direction; volume tells you the strength. A breakout to new highs on heavy volume has broad participation and tends to stick. The same breakout on thin volume lacks support and often fades — the move was made by too few hands to last.
High volume only tells you the move is strong — it can be a strong rally or a strong sell-off. Pair it with the candlestick and trend to read what the crowd is actually doing.
Watch participation in action: trade ten live-moving tickers and feel how momentum builds in the stock market simulator.
Not advice: educational content only. For authoritative basics see the SEC at investor.gov.
Related: what is a candlestick, support and resistance, and technical analysis basics.
Trading volume is the total number of shares (or contracts) traded in a stock during a period — a day, an hour, a minute. It measures how much activity and interest there is in that stock.
Volume shows the conviction behind a price move. A rise on heavy volume has broad participation and tends to hold, while a rise on thin volume can be fragile and easily reversed.
A sudden surge in volume usually marks an important event — earnings, news, or a breakout. It signals that many traders are acting at once, so the move deserves attention.
Not necessarily. High volume simply means strong activity; it can accompany a sharp rise or a sharp fall. Volume confirms the strength of a move, but it does not tell you the direction by itself.