Volume
How much actually traded
What it is
The quantity transacted in each period, drawn as bars beneath price. The one input that is not derived from price itself.
What it may suggest
A break on volume well above average suggests genuine participation. A break on thin volume more often suggests a move that has to be retested.
Where it fails
Not comparable across different instruments or venues, or against unusual sessions like half days, and unreliable in decentralized markets where reported volume can be inflated. The same instrument against its own recent average is the only fair comparison.
Also called volume profile, above average volume.
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