Volume refers to the number of shares of a specific stock or other security that are bought and sold during a given period of time. It tells us how active and busy the market is for that particular security. When volume is high, it means there is a lot of trading activity happening, with many shares being bought and sold. On the other hand, when volume is low, it means there is less trading activity taking place. Volume is important because it gives us an idea of how much interest and attention a stock or security is receiving from investors. High volume can indicate strong interest and can be a sign of significant price movements. Low volume, on the other hand, may suggest that fewer people are interested in trading that security.
By looking at volume, investors and traders can get insights into market trends and make more informed decisions. It helps them understand how much activity is happening in the market for a particular security and can be used as a tool for analyzing market behavior and identifying potential opportunities.