VOLUME


In the stock market, there are number of contract traded into equities during period of specified time such as day, weekly, monthly. This number of selling & buying traded contract are recorded as amount. Total of amount of transacted side, both buy & sell known as Volume.

For example, sold in RPL security data 12,000 and bought were 32,000. We can say here volume in RPL security 44,000.

A very fundamental aspect of equity trading understands volume in which you trading. In the equity universe, there is a number equity traders who trading difference equities and also volume is import for investors.

Most of the stocks that have smallest volume, 15,000 shares per day or less, have a problem, and there are various reasons you should try to avoid such low volume stocks.

Volume is most import for know trend side, in the up trend, volume may increase and for down trend may decrease volume. Volume is a fundamental parameter of technical analysis which is used to measure worth of stock market move.


Points:-

1 if the market is in an uptrend but volume is weak on the up move; it is a sign of weakness in the existing trend.

2 on the daily analysis, if security falls day to day and volume also increasing, it is called as downtrend. Like this condition, in the securities most contracted on sold.

3 on the daily analysis, if security is rising day to day and volume also increasing, it is called as uptrend. Like this condition, in the securities most contracted on bought.

Before investing in any stock, one major element that you have to look at is the company's daily volume.



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