Volume

The total number of shares traded during a specific time period.

What Is Volume?

Volume is the total number of shares that change hands during a given period. It's displayed as bars at the bottom of most stock charts and is one of the most important confirmation tools in technical analysis.

Why Volume Matters

Volume confirms price moves. A stock rising on high volume shows strong conviction — many buyers are piling in. A stock rising on low volume is suspicious — it might reverse quickly. The principle is simple: volume validates direction.

Volume on Earnings Days

Earnings reports typically produce the highest volume days of the quarter for individual stocks. Volume on the earnings day can be 3-10x the average daily volume. This massive trading activity reflects the market rapidly repricing the stock based on new information. On EarningsShot, heavy volume after a beat confirms the market agrees the results are genuinely strong.