Module 1 — Foundations
Volume: the only honest indicator
5 minute read
In plain English
Volume is the number of shares traded. Unlike most indicators, it is a fact rather than a calculation on top of price.
Why it matters
Volume tells you whether other people care about what is happening. A move without volume usually lacks conviction.
Example
A stock that normally trades 500,000 shares by lunchtime trading 4 million by 10am is doing something unusual.
Try this
Sort the Radar by relative volume and read the top five names' news.
Common mistake
Watching price and ignoring volume entirely.
What this does not mean
High volume does not mean the price will go up. It means participation has increased.
Educational content only. Not financial advice.