Chart Reading · Financial education
What Is Trading Volume?
Quick answer: Trading volume measures the amount of shares or contracts traded over a specified time interval.
Understand the core concept
Compare volume only across comparable periods and instruments. Intraday totals naturally accumulate throughout the session.
See how it works
Higher volume can indicate active trading, but it does not establish whether prices will keep rising or reverse.
Know the limitations
Liquidity also involves spreads, order-book depth and market conditions; high past volume does not ensure immediate execution at a desired price.
Put it into context
Charts may display split-adjusted figures or distinguish extended sessions, so always inspect the chart settings.
Try this yourself
Compare two fictional candles with identical price changes but different volume.
Open the stock research worksheet →Continue learning
- Risk Tolerance vs. Risk Capacity
- What Is a Stop-Loss Order?
- How Inflation Can Affect Investments
- How Interest Rates Affect Stock Prices
Check the original sources
Investor.gov education · SEC EDGAR company filings · FINRA Investor Insights
Educational material, not personal financial or trading advice. Initial publication: October 8, 2026. This article is not a substitute for checking current broker rules or company disclosures.