Trading Volume

[#1]

Hi guys, How does volume affect the price of a share? Would low volume create greater volatility in the share price? Thanks.

[#2]

Volume is an extremely important measure. only the institutions and big name traders of the Soros variety can really impact the market significantly. Small timers like us can affect the market in bits and pieces, but sooner or later the big boys step in and remind everybody who is boss. We use volume (personally I use OBV) as an indicator of whether price movements are genuine. If movements up are not met with increasing volume, chances are good it is just a bunch of small time speculators.

[Theater_Cat]

rising price, rising volume = bullish; rising price, declining volume = bearish; declining price, rising volume = BEARISH; declining price, declining volume = BULLISH. NB! Watchout for blowoff volume (market bottom or market top). Volume must expand in the direction you are trading.

[Theater_Cat]

rising price, rising volume = bullish; rising price, declining volume = bearish; declining price, rising volume = BEARISH; declining price, declining volume = BULLISH. NB! Watchout for blowoff volume (market bottom or market top). Volume must expand in the direction you are trading.

[#5]

Thanks alot, guys!