3 min read
Volume on Stock Charts
Learn how trading volume helps confirm price moves and identify unusual activity on stock charts.
Volume confirms participation
Volume shows how many shares or contracts traded during a period. A price move with high volume often carries more information than a similar move on light activity.
Watch for unusual activity
Large spikes in volume can happen around earnings, product announcements, macro news, analyst changes, or market-wide volatility. They are worth comparing against average volume.
Use volume with price
Volume is most useful when paired with price structure. Breakouts, reversals, and sharp selloffs are easier to evaluate when you can see whether participation expanded or faded.