Simply put, volume is the number of trades, or transactions, that take place in a stock. But understanding how to interpret volume (vertical bars you sometimes see below the price chart) is a skill that could benefit traders in the long run. That’s probably because price directly affects portfolio values. Most technical indicators or studies are based on price or volume data, yet price always seems to get more attention.
Sometimes we take things for granted without realizing their importance. Learn to analyze volume with respect to its average to identify trends.Understand the relationship between price and volume using the VolumeAvg indicator Know the importance of monitoring volume because it can provide insight into trading activity and sentiment.
