Trading Volume Explained
The number of shares traded each session. In this game the panel shows it as bars and as a multiple of its 20-day average (for example “1.8×” means 80% more than usual).
How it's calculated
No formula: it's the daily total reported by the exchange. The line on top is a 20-session average.
How traders use it
Volume is used to judge conviction. A breakout on heavy volume is taken more seriously than one on light volume, and a big price move on very high volume often marks news or a turning point. Indicators like On-Balance Volume, popularised by Joe Granville, build on the idea that volume tends to lead price.
What people say
It's one of the few inputs that isn't just a transformation of price, which is why Bollinger and others suggest pairing it with price-based indicators. Still, high volume tells you something important happened, not which way the price will go next.
Practise with this indicator
Open a real hidden-stock chart with only this indicator turned on and see if it helps you beat the market.
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