Volume
Definition
The number of shares or contracts traded during a given period.
Explanation
Volume confirms price trends. Rising prices on increasing volume suggest strong conviction behind the move. Rising prices on declining volume suggest waning enthusiasm — a potential reversal warning. Volume spikes often coincide with institutional activity. Average daily volume helps assess liquidity: stocks trading less than 100,000 shares daily are considered illiquid. On-balance volume (OBV) accumulates volume on up days and subtracts it on down days, creating a running total that can confirm or diverge from price trends.
How Stoquity Uses This
Stoquity incorporates volume analysis across its portfolio management platform, providing real-time monitoring and AI-powered insights for every portfolio.