What is Volume

What is intended by volume is trading volume. In other words, it is the amount sold of a certain asset during a certain period of time. Volume has several implications.

Volume can be used to corroborate the soundness of a certain price trend. High trading volumes support the likelihood of the price trend being sustainable. Therefore, signals based on price trend observations accompanied by high trading volumes are less likely to be false signals and can give traders an idea about the right timing to buy or sell assets. Thanks to high volumes, investors can better spot market reversals and can improve trading decision making.