investing guide

What Is The Volume Indicator Used For When Trading Stocks

So what is the volume indicator used for when trading stocks?

The volume indicator is one of the most common technical analysis tools. It shows how many shares of stock have changed hands over a given amount of time.

Some investors will use volume as a tool to determine if buying or selling is genuine, or if a stock price is moving do to other factors.

Billions of shares of stock are traded everyday on the stock exchanges. More than 60 percent of Americans are invested in the stock market one way or another. This is actually good because it keeps the markets liquid, which makes it very easy to get in and out of most stocks.

Of course this also means there are many people who probably shouldn't be investing in the stock market, because of their lack of knowledge. The pros on Wall Street love to take advantage of the uneducated investors.

volume indicator

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