When it comes to stock market trading, what does the volume of the stock represent?
Does the volume represent the number of shares bought or sold? What does it mean when the volume is in the red? For a DOW company, what would be considered a large volume for a day? 1 Million, 10 Million, 100 Million. Where can you go to see the trends in the volume of corporations?
It represent the amount of shares that are trading. This is usually the market amount. Therefore when you chart the market trade and the stock activity, you are charting the volume trading. This is good for technical analysis as opposed to fundamental which does not take into account the volume traded for the market size. So the volume represents the technical analysis of the stock.
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July 24th, 2010 at 4:18 pm
volume represents 2 things , interest in the stock and the opposite is when people are selling because of bad news ( dumping ) .
but high pe can also represent a stock with good future revenues or falling revenues .
References :
spider man
July 24th, 2010 at 5:05 pm
It represent the amount of shares that are trading. This is usually the market amount. Therefore when you chart the market trade and the stock activity, you are charting the volume trading. This is good for technical analysis as opposed to fundamental which does not take into account the volume traded for the market size. So the volume represents the technical analysis of the stock.
References :