InsiderFlowGlossary › What is trading volume?

What is trading volume?

Volume is the number of shares traded over a period: it measures how strongly the market believes in a move.

A rise on high volume signals broad conviction; the same rise on thin volume may be the whim of a few players. That's why technical analysis treats volume as the "confirmation" of price moves.

Volume spikes mark events: earnings, news, index rebalancings. Unusual volume with no visible news sometimes front-runs news not yet public — one of the signals algorithms monitor.

Concrete example

If a stock that trades 2 million shares a day moves 30 million on a +15% jump, something big happened: volume certifies the move is real.

How you see it in InsiderFlow

On InsiderFlow these concepts come alive on real data: what big funds and insiders are buying, explained every day.

Frequently asked questions

Is high volume good or bad?

Neither: it amplifies the meaning of the ongoing move, in both directions.

Where do you see volume?

On any platform or chart: it's the bar series below the price chart.

Related terms

What is liquidity?What is technical analysis?What is a market rally?