In trading, volume refers to the total number of shares or contracts that are traded during a specific period of time. It is an important indicator of market activity and liquidity.
High trading volume indicates that there is a lot of interest in a particular security or market. This can be a sign of strength, as it suggests that there are plenty of buyers and sellers willing to trade at the current price. Conversely, low trading volume can indicate weakness, as it suggests there is little interest in a particular security or market.
Traders can use trading volume to identify trends and make trading decisions. For example, a breakout on high volume is often considered a more significant signal than a breakout on low volume.