Market
Volume traded
Volume
What it is
Number of shares traded during the session. Represents activity and interest in the stock. The higher the volume, the more participants — so the more credible the price formation.
How to read it
Compare to the average volume over recent weeks. Very high volume on a price move confirms conviction. Low volume on a rally suggests few participants — the rally could fade.
Common reference points
- Compare to 20-day avg volumeSee "Volume / avg"
Orders of magnitude, not a rule: the same number does not mean the same thing from one sector to the next.
What it does not tell you
Absolute volume varies hugely by market cap. Apple trades 50M+ shares per day; a small-cap may trade 10,000. The ratio to average is more telling than the raw value.
Other measures — Market
Educational content. Polaris is not a registered investment adviser and makes no recommendation.