METATrading Academy

Technical analysis

Volumekitne shares ka sauda hua

The number of shares or contracts traded in a period; rising volume shows participation and helps confirm whether a price move is genuine.

Volume is how many shares or contracts changed hands in a given period, shown as bars under the price chart. It measures participation. A price move on high volume has many traders behind it and is more likely to hold; the same move on thin volume is easier to reverse. Suppose SBI breaks above ₹820 resistance on volume three times its 20-day average; that breakout has conviction. If it breaks out on half the usual volume, be suspicious. Volume also spikes at climaxes, when a long trend ends with a burst of panic or euphoria. On NSE, volume is reported in shares and in value; the value figure matters for judging liquidity in low-priced stocks. In derivatives, volume counts contracts traded that day, which is different from open interest, the number of contracts still open. Compare volume with its own average, not with other stocks.

Lessons that use this term