Volume & Turnover
How many shares traded and how much money changed hands — the market’s conviction meter.
VolumeThe number of shares or contracts traded in a period. is the number of sharesA unit of ownership in a company. traded in a period; turnover is volumeThe number of shares or contracts traded in a period. × price — the rupee value that changed hands. Both measure one thing: how much activity and conviction is behind a move.
Price tells you what happened; volumeThe number of shares or contracts traded in a period. tells you how much to believe it. A 5% rise on huge volumeThe number of shares or contracts traded in a period. is a crowd voting with conviction. The same 5% on thin volume is a few trades that can reverse just as easily. Always read price and volume together.
ExampleA stock breaks above a long resistancePrice zones where buying (support) or selling (resistance) tends to dominate. level on 3× its normal volumeThe number of shares or contracts traded in a period. — that’s a strong, well-supported move. The same breakoutWhen price decisively pushes through a support or resistance level. on half-normal volumeThe number of shares or contracts traded in a period. is suspect and often fails.
Key takeawayVolumeThe number of shares or contracts traded in a period. (sharesA unit of ownership in a company.) and turnover (rupees) measure conviction behind a price move — high volumeThe number of shares or contracts traded in a period. validates a move, low volume questions it.
FAQs
Is high volume always bullish?
No — volume is directionless. High volume on a falling price signals conviction *selling*. It confirms the strength of whatever move is happening, up or down; it’s not bullish by itself.