Level 4
Volume
By the end of this level you can read from the volume bars whether real participation stands behind a price move.
In this level
- What is volume?Volume is the amount of trading that changed hands in a period — how many shares, contracts or coins were bought and sold. On a chart it usually appears as vertical bars beneath…
- Volume in step with the trendThe traditional reading goes like this: in a healthy trend, volume expands on moves in the trend's direction and contracts on the corrections. If the upward legs of an uptrend run…
- Volume on breakoutsWhere volume earns its keep most is at breakouts. To level 3's question — "is this breakout genuine or false?" — volume adds strong evidence. The traditional reading: a breakout…