What does Trading Volume mean?

Volume is the number of shares of a stock traded in a given period; big price moves on high volume are more trustworthy than the same move on low volume.

Volume is the number of shares traded in a period. Big price moves on high volume are more trustworthy than the same move on low volume. Volume confirms — a breakout without volume often fails.

Trading Volume example

A stock that normally trades 2 million shares a day jumps 8% on 10 million shares — five times its usual volume. That tells you the move had real buying behind it, not just a few small trades.

Common beginner mistake

Ignoring volume when reading a breakout. A price breaking above resistance on light volume fails far more often than one with heavy volume behind it.