What is the use of volume of traded shares on a stock exchange? and Stock Rock Textures 014

What is the use of volume of traded shares on a stock exchange?

How can stock traders use that information?


Stock best answer:

Answer by John W
It can give you an idea of of the liquidity of the stock. Technical analysts have a number of indicators such as the tidal force indicator which multiplies the volume with the difference between the days close and that of the previous day, ( the idea being to indicate if money is moving in or out of the stock ). Of course the usefulness of all technical indicators are indeterminate.

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Stock Rock Textures 014


Image by Horizon2035
Natural textures of rock - Some warm, some cold. Various places, Australia.

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