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Volume Chart
Alex Naamani avatar
Written by Alex Naamani
Updated over 4 years ago

The Volume Chart shows the number of shares that have been traded over a given period. Volume is measured from close-to-close. When the price closes below the previous close, the volume bar is red. When the price closes above its previous close, the bar is green

Volume data can give an indication of whether price trends are sustainable. If an uptrend is accompanied by rising volume, this could indicate that a growing number of bullish investors are buying the stock. The price trend could therefore be more sustainable.

On the other hand, there are typically less active market participants during bearish phases. Therefore, if trading volume is falling or steady, it could signal that a market is becoming exhausted and a price reversal is around the corner.

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