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Building up · 3 min read

Volume: how much conviction is behind a move

Volume counts how many shares changed hands. A 5% rise on huge volume means many investors agreed. The same rise on thin volume means very few did.

Volume spikes cluster around news: earnings, guidance, approvals, lawsuits. A spike with no news is worth a second look.

On its own volume says nothing about direction. It's the confidence rating attached to whatever the price just did.

Remember

Price tells you what happened. Volume tells you how much it counted.

See a real example

Compare Nvidia, Apple and Ford

See how today's move looks next to each company's usual trading.

What this shows

A big percentage move in a quiet stock and a small one in a heavily traded giant can mean the same thing in dollars.

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