Definition. The number of contracts that changed hands in a given period. The basic measure of market activity.
How it works
Every trade has a buyer and a seller, so volume is counted once per trade. The distribution of volume over time and across price levels is the basis of the volume profile, the footprint and VWAP.
Example
A breakout from a range on rising volume shows greater participant commitment than a move on low volume.
What to watch out for
Volume tells you about activity, not direction. The same volume can mean initiative or absorption.
This is the day, week and month Volume Profile in the Hetman Terminal (Volume Bastions). Screenshot from the Hetman Index (IHA) – a training instrument, simulated data. See all the Hetman Terminal tools →
♛ The Hetman Terminal is part of Club: live for Dow Jones from the Bishop plan, 6 markets (Dow Jones, S&P 500, Nasdaq, gold, crude oil, Bitcoin) and automatic detection of order flow events from the Rook plan. A session on the ♛ Hetman Index (training, simulated data) in the full panel comes with the Knight plan and above. Compare the plans →
You'll find the full explanation with graphics, examples and exercises in the 📖 Order flow encyclopedia space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).
