No Frame Volume Volume is the number of shares or contracts traded during a given time frame. The time frame is usually one day, but can also be a week. Overview The analysis of volume is basic and essential in technical analysis.
Volume provides evidence of intensity with a given price move.
As volume often leads price, it is a valuable indicator, especially for price peaks. Interpretation Monitoring the volume will either corroborate a price movement or caution that a price move is unreliable. Many believe that volume precedes price. Volume confirms the price trend when it increases with an uptrend and decreases with downtrends. When you have a price breakout on declining volumes, this divergence is a warning of decreasing buying pressure.