📊☝️ What is Volume in Trading and How to Interpret It? 💪
Relative volume, also known as "RVOL", is an indicator that shows investors how many people are buying or selling in the market.
It indicates the volume or the number of trades occurring at a given moment and compares them with the number of trades from a previous period.
✅️ What is Stock Volume?
Stock volume is an index that demonstrates the number of shares or securities being traded in the market within a specified period of time.
The same goes for the RVI (Relative Vigor Index), which compares the closing price with the opening price, to have a broad reading of how the market correlates for buying and selling.
✅️ Why Analyze Volume in Trading?
Volume in trading provides you with information that price changes alone cannot give you.
This indicator will allow you to understand: calm reactions, upward phases, periods of overselling, and the number of investors interested in an asset.
🎯 Colors and Sizes of Charts
✔️Candlesticks are the most classic and usually appear in green or red. Observe their length and whether they have wicks or not, just like the opening and closing prices.
✔️The highest points indicate the maximum values of the day, while the lowest are the minimums.
