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    Volume is an important indicator in technical analysis. It measures the number of shares traded each day. Average volume looks at the daily trading quantity over a past period like 3 months. Relative volume compares current volume to the average for that time of day, with a reading over 1 indicating higher than usual trading activity. Understanding volume can provide insight into chart patterns and whether price changes are significant.

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    Volume is an important indicator in technical analysis. It measures the number of shares traded each day. Average volume looks at the daily trading quantity over a past period like 3 months. Relative volume compares current volume to the average for that time of day, with a reading over 1 indicating higher than usual trading activity. Understanding volume can provide insight into chart patterns and whether price changes are significant.

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    51 views1 page

    Lecture 16 Volume PDF

    Uploaded by

    braetto_1x1
    Volume is an important indicator in technical analysis. It measures the number of shares traded each day. Average volume looks at the daily trading quantity over a past period like 3 months. Relative volume compares current volume to the average for that time of day, with a reading over 1 indicating higher than usual trading activity. Understanding volume can provide insight into chart patterns and whether price changes are significant.

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    Lecture 16

    Volume
    e Importance of volume
    •Why Volume is Important
    •Volume and Chart Patterns
    •Volume Precedes Price

    Average volume: The average daily quantity of shares that have been traded for the
    past X period. Usualy this is calculated on the past 3 months.

    Relative volume: Relative volume compares the current volume to the average vol-
    ume that the stock should have at the same time of day. If the relative volume is over
    1 this means the stock is experiencing more then it’s usual volume. If for example the
    relative volume is 4, this means the stock is experiencing 4 times it’s usual volume.

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