Technical Indicators: Volume
Volume is an important technical indicator. Volume shows the number of
shares traded at a specific time frame, for example daily as shown below. Usually volume does not provide a
buy or sell signals by itself but it can you help analyzing price moves.
High volume usually shows the beginning of new trend. High
volume is often present near the bottoms of the market as seen on the
chart above. Relative low volume shows indecisive expectations of the
traders. Volume spikes usually occur when there is a sudden drop or
increase in stock prices.