volume The number of shares, bonds or contracts traded during a given period, for a security or an entire exchange. It is helpful for noting divergences and determining the strength of trends. If a stock's price is rising on heavy volume, there is a definite trend there. If the price is falling on high volume, a bearish trend is in the works. If a stock price is rising on low volume, you may be looking at a divergence. The stock price falling on weak volume, may also indicate a divergence. E*TRADE volume charts have red bars for the days when the stock price falls (bears beat the bulls). Blue bars indicate days when the price rises (bulls beat the bears). A green 22-day Moving Average is overlaid on the volume graph to help identify days when the volume is not at the previous day's levels. See also: called trading volume.
To learn more about how to use charts and technical indicators to enhance your trading, view interactive charts tutorial.
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