For example, as of October 17, 2021, the most actively traded US stock, based on a 90-day average, was Camber Energy ( CEI) with an average of 135 million shares traded per day.*įrom a chart analysis perspective, volume is critical. Volume is simply the number of shares traded in a particular stock, index, or other investment over a specific period of time. For example, analyzing trends in volume can help you validate patterns if you are an active investor that incorporates charts and trends into your strategy. Volume (or the lack thereof) can be a helpful piece of information in the trading process. Tactical investors that are trying to determine short-term market direction might look to see what volume is saying about US stocks. But persistent COVID worries, a potential global energy crisis, the US and some other central banks initiating plans to taper back their assistance, and China’s real estate troubles have some investors worrying that the bull market may not have the strength to continue.įrom a charting perspective, the long-term uptrend is evident looking at a multimonth chart of stocks. Stocks are trading within 1% of record highs, thanks in large part to blockbuster earnings for big US banks lately. That follows the worst September since 2013.
More than halfway through the month, stocks are on pace for their best October since 2015. The S&P 500's trading volume might suggest the momentum behind stocks may need additional strength.Investors can assess volume relative to recent data, similar periods in the past, an average, or a benchmark.Volume can be used to confirm the direction of a trend.
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