Volume

[Leth]

Volume

Volume is used to highlight unusual trading activity in a security. It can be displayed as a separate indicator in Daily, Weekly or Monthly format.

Volume signals are covered in detail under Volume Patterns.

Example

Coca Cola Corporation shows a close-up of a ranging market with Blue daily volume and a Lavender 20 day exponential moving average.

ko%20volume.png

Large increases in volume can be seen on days [1],[3] and [5] - when closing price falls sharply, signaling that distribution is taking place.

There is unusually low volume on days [2] and [4], both are inside days signaling uncertainty.