What is the importance of volume in the stock market?



Trading volume is the number of shares or contracts that indicates the overall activity of a stock market for a given period. It is an important technical indicator an investor uses to confirm a trend or trend reversal which gives an investor an idea of the price action of a stock and whether he should buy or sell the security.

If trading volume increases, prices usually move in the same direction. This means, if a security is moving higher in an uptrend, the volume of the security should also increase and vice versa. However, if you want to invest in the stock market without any risk of loss then you can also consult an advisory firms like 100mcxtips and khelomcx to get the effective and profitable advises on the basis of technical and fundamental analysis of market.
(Source: https://www.quora.com/What-is-the-importance-of-volume-in-the-stock-market )




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