JoymistaWhat Is Trading Volume and Why Does It Matter?
Volume is how much of an instrument changed hands over a period, such as the number of shares, contracts or coins in a candle.
Explained
A move on heavy volume is taken more seriously than one on light volume, and a breakout on high volume is stronger than one without. Forex has no central volume, so what platforms show is usually the number of price changes, not true volume.
Example
Example with made-up numbersA stock that usually trades a million shares a day breaks resistance on a day with 3 million, a breakout on three times normal volume.
Use it in Joymista
Related terms
- CVD (Cumulative Volume Delta)Delta is market-buy volume minus market-sell volume in a candle, and CVD is its running…
- BreakoutA breakout is price closing clearly outside a support or resistance zone; a false…
- LiquidityIn general, liquidity is how easily you can buy and sell without moving price much. In…
Put it to work in Joymista
Signing up is free, some tools are free, and one subscription unlocks the rest.
Open in JoymistaEducational content, not investment advice.