Volume of Trade – Definition and Explanation

Trading volume is the indicator of traders’ activity. The higher it is, the higher the liquidity of the asset and its volatility. The dynamics of changes in trading volume helps to find potential price reversal points and key levels and determine the trend slowdown zones. Trading volume is also used to confirm the trend and reversal patterns.

Read on to learn how to use this indicator and how it can help when building trading systems.

What Is Volume of Trade?

Trading volume is the number of trades or bought/sold assets in a fixed time interval. It reflects the general interest… Read full author’s opinion and review in blog of #LiteFinance