TECHNICAL INDICATORS - Trading volume

TECHNICAL INDICATORS

**Trading volume**

Trading volume indicates the number of shares or contracts traded in the market. It tells if a particular price trend is supported by market players.

If the price of a share is increasing with higher than normal volume, it indicates investors support the rally and that the stock would continue to move upwards. However, a falling price trend with big volume signals a likely downward trend.

A high trading volume can also indicate a reversal of trend. For example, a drop in the share price with very high trading volume is viewed as a sign that the stock has hit the bottom.