Term:VOLUME

The number of shares changing hands during a single trading day. This figure is calculated by counting the number of shares traded in a particular security daily, which gives the daily traded volume you can see on the price page of your daily newspaper and in the volume histogram at the bottom of your chart in ShareFriend. You should keep a careful lookout for exceptional or unusual volumes on a share, because that can give a clue to possible special situations developing. Your software can display the volume traded as a histogram at the bottom of the chart. In the chart, just click the right mouse button to bring up the “Quick Access Menu”. The third item from the bottom of this menu is the “Volume”. Clicking on this menu item turns the volume histogram on and off. You can also see the exact number of shares which changed hands if the volume histogram is on and you can click on the “data window” icon at the top of your screen. It is the seventh icon from the left-hand side. Your software has various indicators which make use of the daily volume traded – like the Volume Oscillator, the Volume ROC and the On Balance Volume (OBV).  The chart below shows a share together with its volume histogram.

volume

Chart of Share Price with Volume Histogram

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