Volume
The number of shares traded during a given period. Volume confirms price moves — high volume validates direction, low volume suggests weakness.
Explained Simply
Volume is the most underappreciated indicator. Price shows what happened; volume shows how much conviction was behind it. A breakout on 3x average volume is far more significant than one on half volume. Rising prices on declining volume (bearish divergence) often precede reversals. Volume spikes can also indicate capitulation (a selling climax that marks a bottom) or euphoria (a buying climax that marks a top).
How Tradewink Uses Volume
Volume is a mandatory confirmation for every breakout signal — minimum 1.5x average daily volume. On Balance Volume (OBV) and Accumulation/Distribution are used to detect institutional accumulation before breakouts. Volume-weighted analysis also powers our mean reversion signals: declining sell volume at support confirms a potential bounce.
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See Volume in action
Tradewink uses volume as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.