Volume Analysis

Volume Analysis,

What is Volume Analysis?

Volume analysis is the study of the number of shares or contracts in a security that trades over a period of time. Technical analysts use volume analysis as one of the many factors that influence their business decisions. By analyzing volume trends in relation to price movements, investors can determine the importance of changes in bond prices.

  • Volume analysis involves looking at relative or absolute changes in the trading volume of an asset and drawing conclusions about future price movements.
  • Volume can be an indication of the strength of the market because a market that rises in volume is generally considered strong and healthy. When the price falls below the rising price, the downward trend increases.
  • Some tools, such as the Positive Volume Index (PVI), use volume in technical analysis.

Literal Meanings of Volume Analysis

Volume:

Meanings of Volume:
  1. A book that is part of a work or series.

  2. The place where an object is occupied or enclosed in a container, especially if the container is large.

  3. Sound intensity or degree of sound intensity.

Sentences of Volume
  1. A three-volume biography of George Bernard Shaw

  2. The drainage system cannot handle the amount of rainwater

  3. The sound of the radio is getting louder

Synonyms of Volume

largeness, sound, capacity, bigness, loudness, mass, extensiveness, cubic measure, size, magnitude, amplification, bulk, extent

Analysis:

Meanings of Analysis:
  1. An in-depth study of the elements or structure of an object.

  2. Brief for psychological analysis

Sentences of Analysis
  1. Statistical analysis

Synonyms of Analysis

perusal, inspection, investigation, scanning, scrutiny, examination, study, survey