What is Volume?

Volume refers to the trading volume, which is very common in stock, futures, forex, cryptocurrency, and other markets. It is one of the most basic and important indicators.

Volume = the number of trades that occur within a certain time period.

For example:

Stock market: How many shares were traded?

Cryptocurrency: How many coins were traded (measured in BTC, ETH, etc.)?

Futures: How many contracts were traded?

What does it reflect?

Market activity + real participation intensity

It is a key indicator for judging whether the trend is reliable and the strength of buying and selling forces.

⭐Common uses of Volume (must-read for traders)

① Volume increase on upward movement

Price increases + volume expands

→ Strong buying, trend is likely to be effective

② Volume increase on downward movement

Price decreases + volume expands

→ Strong selling, trend may further decline

③ Volume decrease on pullback

Very little volume during a decline

→ May be a healthy pullback, main force has not sold off

④ Volume decrease on upward movement

Price increases but volume is weak

→ May be a false increase or a spike followed by a drop