What it is
Volume is the count of shares (or units, for futures and options) that traded during a chosen window โ a day, an hour, a minute.
Why it matters
- Liquidity โ high-volume stocks are easier to buy or sell without moving the price.
- Conviction โ large price moves on high volume are typically interpreted as more "real" than moves on thin volume.
- Context โ comparing today's volume to an average (often the 10-day or 30-day moving average) gives a quick read on whether interest is unusually high.
Volume doesn't say which direction the move is โ only how heavy the participation was.