Importance of Volume in Stock Trading

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    YCG DKYGQ^QGYEYDMK

    MH XMOWJG

    Lceqyd|y| gj~omt e yrm*idjgk|dmkeo e~~qmelc

    ym jeqfgy ekeot|d| ycey dklowig| e |ywit mh

    ~qdlg eki xmowjg+ Mh ycg yrm/ ~qdlg d| ycg

    jmqg dj~mqyeky+

    Cmrgxgq/ xmowjg ~qmxdig| dj~mqyeky

    |glmkieqt lmkhdqjeydmk mh ycg ~qdlg elydmk mk

    ycg lceqy eki mhygk bdxg| eixeklg reqkdkb mh

    ek dj~gkidkb |cdhy dk yqgki

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    Xmowjg d| ycg kwjagq mh wkdy| yqeigi iwqdkb e

    bdxgk ydjg ~gqdmi/rcdlc d| w|weoot e iet+Dy d|

    ycg kwjagq mh lmjjmk |ymlf |ceqg| yqeigi

    gelc iet dk ycg |ymlf jeqfgy+ Xmowjg lek eo|m

    ag jmkdymqgi mk e rggfot ae|d| hmq omkbgq*

    qekbg ekeot|d|+

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    Rcgk w|gi dk lmk`wklydmk rdyc ycg ~qdlg elydmk/xmowjg ygoo| w| |mjgycdkb eamwy ycg |yqgkbyc mq

    rgefkg|| mh ycg lwqqgky ~qdlg yqgki+Xmowjgjge|wqg| ycg ~qg||wqg agcdki e bdxgk ~qdlgjmxg+

    E| e qwog/ cgexdgq xmowjg #jeqfgi at oeqbgq

    xgqydleo aeq| ey ycg amyymj mh ycg lceqy$ |cmwoi ag~qg|gky dk ycg idqglydmk mh ycg ~qgxedodkb ~qdlgyqgki+

    Iwqdkb ek w~yqgki/ cgexdgq xmowjg |cmwoi ag

    |ggk iwqdkb qeoodg|/ rdyc odbcygq xmowjg #|jeoogqxmowjg aeq|$ iwqdkb imrk|dig lmqqglydmk|+ Dkimrkyqgki|/ ycg cgexdgq xmowjg |cmwoi mllwq mk~qdlg |goomhh|+ Ageq jeqfgy amwklg| |cmwoi yefg

    ~oelg mk e odbcygq xmowjg+

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    Xmowjg D| ek Dj~mqyeky ^eqy mh ^qdlg

    ^eyygqk|

    Xmowjg eo|m ~oet| ek dj~mqyeky qmog dk ycg hmqjeydmkeki qg|mowydmk mh ~qdlg ~eyygqk|+ Gelc mh ycg ~qdlg~eyygqk| ig|lqdagi ~qgxdmw|ot ce| dy| mrk xmowjg~eyygqk+

    E| e qwog/ xmowjg ygki| ym idjdkd|c e| ~qdlg ~eyygqk|hmqj+ Ycg |wa|guwgky aqgefmwy ycey qg|moxg| ycg~eyygqk yefg| mk eiigi |dbkdhdleklg dh ycg ~qdlgaqgefmwy d| ellmj~ekdgi at cgexdgq xmowjg+

    Cgexdgq xmowjg ellmj~ektdkb ycg aqgefdkb mhyqgkiodkg| eki |w~~mqy mq qg|d|yeklg ogxgo| ogki|bqgeygq rgdbcy ym ~qdlg elydxdyt

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    Mk*Aeoeklg Xmowjg #MAX$

    Jeqfgy ekeot|y| cexg |gxgqeo dkidleymq| ym jge|wqgyqeidkb xmowjg+ Mkg mh ycg |dj~og|y/ eki jm|y ghhgly/ d|mk*aeoeklg xmowjg #MAX$+MAX ~omy| e qwkkdkblwjwoeydxg ymyeo mh w~|dig xgq|w| imrk|dig xmowjg+

    Gelc iet ycey e jeqfgy lom|g| cdbcgq/ ycey iet| xmowjgd| eiigi ym ycg ~qgxdmw| ymyeo+

    Mk gelc imrk iet/ ycg xmowjg d| |wayqelygi hqmj ycgymyeo+ Mxgq ydjg/ ycg mk*aeoeklg xmowjg rdoo |yeqy ymyqgki w~reqi mq imrkreqi+

    Dh dy yqgki| w~reqi/ ycey ygoo| ycg yqeigq ycey ycgqg|jmqg w~|dig ycek imrk|dig xmowjg/ rcdlc d| e bmmi|dbk+ E heoodkb MAX odkg d| w|weoot e ageqd|c |dbk+

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    ^omyydkb MAX

    Ycg MAX odkg d| w|weoot ~omyygi eomkb ycg

    amyymj mh ycg ~qdlg lceqy+ Ycg dige d| ym jefg

    |wqg ycg ~qdlg odkg eki ycg MAX odkg eqg

    yqgkidkb dk ycg |ejg idqglydmk+ Dh ~qdlg| eqg

    qd|dkb/ awy ycg MAX odkg d| hoey mq heoodkb/ ycey

    jgek| ycgqg jet kmy ag gkmwbc xmowjg ym

    |w~~mqy cdbcgq ~qdlg|+ Dk ycey le|g/ ycgidxgqbgklg agyrggk e qd|dkb ~qdlg odkg eki e

    hoey mq heoodkb MAX odkg d| e kgbeydxg reqkdkb

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    MAX Aqgefmwy|

    Iwqdkb ~gqdmi| mh |digret| ~qdlg jmxgjgky/rcgk ycg jeqfgy yqgki d| dk imway/ ycg MAX odkgrdoo |mjgydjg| aqgef mwy hdq|y eki bdxg ek geqot

    cdky mh hwywqg ~qdlg idqglydmk+ Ek w~|dig aqgefmwy dk ycg MAX odkg |cmwoi leylc

    ycg yqeigq| gtg eki lew|g cdj mq cgq ym yefg elom|gq ommf ey ycg jeqfgy mq |ymlf dk uwg|ydmk+

    Ey jeqfgy amyymj|/ ek w~|dig aqgefmwy dk mk*aeoeklg xmowjg d| |mjgydjg| ek geqot reqkdkb mhek gjgqbdkb w~yqgki

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    W\DKB IDHHGQGKY YDJG HQEJG\ HMQ

    \CMQY* EKI OMKB*YGQJ XDGR\

    Aeq lceqy ekeot|d| d| kmy odjdygi ym iedot aeq

    lceqy|+ Rggfot eki jmkycot lceqy| ~qmxdig e

    xeoweaog omkb*ygqj ~gq|~glydxg mk jeqfgy cd|ymqt

    ycey lekkmy ag mayedkgi at w|dkb iedot lceqy|eomkg+

    Ycg iedot aeq lceqy w|weoot |cmr| w~ ym yrgoxg

    jmkyc| mh ~qdlg cd|ymqt hmq gelc jeqfgy+ Rggfotlceqy| |cmr eojm|y hdxg tgeq| mh ieye/ rcdog ycg

    jmkycot lceqy| bm aelf mxgq 1> tgeq|

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    At |ywitdkb ycg|g lceqy|/ ycg lceqyd|y bgy| e agyygq digemh omkb ygqj yqgki|/ rcgqg cd|ymqdl |w~~mqy ekiqg|d|yeklg ogxgo| eqg omleygi/ eki d| eaog ym mayedk elogeqgq ~gq|~glydxg mk ycg jmqg qglgky elydmk qgxgeogi

    dk ycg iedot lceqy|+ Ycg|g rggfot eki jmkycot lceqy| ogki ycgj|goxg|

    uwdyg rgoo ym |yekieqi lceqy ekeot|d| ig|lqdagi dk ycg~qglgidkb ~ebg|+

    Ycg xdgr cgoi at |mjg jeqfgy ma|gqxgq| ycey lceqy

    ekeot|d| d| w|ghwo mkot hmq |cmqy*ygqj ekeot|d| ekiydjdkb d| |dj~ot kmy yqwg+ Ycg ~qdkld~og| mh lceqyekeot|d| lek ag w|gi dk ekt ydjg idjgk|dmk+

    5* tgeq jmkycot lceqy/ ycg 7*tgeq rggfot lceqy |cmwoi ag lmk|woygi+

    Mkot ycgk |cmwoi ycg iedot lceqy ag |ywidgi+ Dk mycgq rmqi|/ycg ~qm~gq mqigq ym hmoomr d| ym agbdk rdyc e |modi mxgqxdgreki ycgk bqeiweoot |cmqygk ycg ydjg cmqdpmk+

    #Hmq gxgk jmqg jdlqm|lm~dl jeqfgy ekeot|d|/ ycg |ywit mhycg iedot lceqy lek ag hmoomrgi at ycg |lqwydkt mh dkyqeietlceqy|+$

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    W\DKB E YM^*IMRK

    JEQFGY E^^QMELC Ycg dige mh agbdkkdkb mkg| ekeot|d| rdyc e aqmeigq xdgr

    eki bqeiweoot keqqmrdkb mkg| hmlw| ce| ekmycgq dj~mqyekye~~odleydmk dk ycg hdgoi mh jeqfgy ekeot|d|+

    Ycey ce| ym im rdyc wydodpdkb e ym~*imrk e~~qmelc ymekeotpdkb ycg |ymlf jeqfgy+ Ycd| e~~qmelc wydodpg| e ycqgg*|yg~ e~~qmelc ym hdkidkb rdkkdkb |ymlf|+

    Dy |yeqy| rdyc ek mxgqeoo jeqfgy xdgr ym igygqjdkg rcgycgqycg |ymlf jeqfgy d| jmxdkb w~ mq imrk/ eki rcgycgq ycd| d|e bmmi ydjg ym ag dkxg|ydkb dk ycg jeqfgy+

    Dy ycgk aqgef| ycg |ymlf jeqfgy imrk dkym jeqfgy |glymq|eki dkiw|yqt bqmw~| ym igygqjdkg rcdlc ~eqy| mh ycg |ymlfjeqfgy ommf ycg |yqmkbg|y+ Hdkeoot/ dy |ggf| mwy ogeidkb|ymlf| dk ycm|g ogeidkb |glymq| eki bqmw~|+

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    YCG HDQ\Y \YG^0 Ycg Je`mq Jeqfgy

    Exgqebg| Ycg dkygky mh ycg hdq|y |yg~ dk ycg ym~*imrk e~~qmelc d| ym

    igygqjdkg ycg yqgki mh ycg mxgqeoo jeqfgy+

    Ycg ~qg|gklg mh e awoo jeqfgy #e qd|dkb yqgki$ d| lmk|digqgie bmmi ydjg ym dkxg|y hwki| dk ycg |ymlf jeqfgy+

    Ycg ~qg|gklg mh e ageq jeqfgy #e heoodkb yqgki$ jdbcy|wbbg|y e jmqg lewydmw| e~~qmelc ym ycg |ymlf jeqfgy+

    Dk ycg ~e|y/ dy re| ~m||daog ym ommf ey mkg mh |gxgqeo je`mqjeqfgy exgqebg| ym bewbg ycg jeqfgy| yqgki+

    Ycey re| aglew|g jm|y je`mq exgqebg| w|weoot yqgkigi dk

    ycg |ejg idqglydmk+ Ycey ce|ky eoret| aggk ycg le|g dkqglgky cd|ymqt cmrgxgq+ Hmq ycey qge|mk/ dy| dj~mqyeky ymcexg |mjg hejdodeqdyt rdyc ycg je`mq jeqfgy exgqebg|/ ekiym fkmr rcey gelc mkg elyweoot jge|wqg|+

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    Idhhgqgky Exgqebg| Jge|wqg Idhhgqgky Ycdkb|

    Ycg yqeidydmkeo aowg lcd~ exgqebg|odfg ycg Imr @mkg|Dkiw|yqdeo Exgqebg/ ycg KT\G Lmj~m|dyg Dkigs/ eki ycg \(^7>>bgkgqeoot bdxg ycg ag|y jge|wqg mh ycg je`mq jeqfgyyqgki+

    Ycg Ke|ieu Lmj~m|dyg Dkigs/ at lmkyqe|y/ d| cgexdotdkhowgklgi at yglckmombt |ymlf|+ Rcdog ycg Ke|ieu d| ebmmi aeqmjgygq mh yqgki| dk ycg yglckmombt |glymq/ dy| og||w|ghwo e| e jge|wqg mh ycg mxgqeoo jeqfgy yqgki+

    Ycg Qw||goo 1>>> Dkigs jge|wqg| ycg ~gqhmqjeklg mh|jeoogq |ymlf|+ Hmq ycey qge|mk/ dy| w|gi jedkot ym bewbgycg ~gqhmqjeklg mh ycey |glymq mh ycg jeqfgy+

    Ycg Qw||goo d| og|| w|ghwo e| e jge|wqg mh ycg aqmeigqjeqfgy rcdlc d| lmj~qd|gi mh oeqbgq |ymlf|+

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    YCG \GLMKI \YG^0 \glymq| eki Dkiw|yqt Bqmw~|

    Ycg |ymlf jeqfgy d| idxdigi dkym jeqfgy

    |glymq| rcdlc eqg |waidxdigi hwqycgq dkym

    dkiw|yqt bqmw~|+ Ycgqg eqg ygk jeqfgy|glymq|/

    rcdlc dklowig Ae|dl Jeygqdeo|/ Lmk|wjgq

    Ltlodleo|/ Lmk|wjgq Kmk*Ltlodleo|/ Gkgqbt/

    Hdkekldeo/ Cgeoycleqg/ Dkiw|yqdeo/ Yglckmombt/

    Ygoglmjjwkdleydmk|/ eki Wydodydg|+ Gelc mhycm|g |glymq| lek cexg e| jekt e| e impgk mq

    jmqg dkiw|yqt bqmw~|+

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    YCG YCDQI \YG^0 Dkidxdiweo \ymlf|

    Hmq ycm|g dkxg|ymq| rcm igeo dk dkidxdiweo|ymlf|/ ycd| d| ycg ycdqi |yg~ dk ycg ym~*imrkjeqfgy e~~qmelc+ Cexdkb d|moeygi ek dkiw|yqt

    bqmw~ ycey ce| |yqmkb w~|dig ~mygkydeo/ ycgyqeigq lek ycgk ommf rdycdk ycey bqmw~ hmqrdkkdkb |ymlf|+ Dy| aggk g|ydjeygi ycey e|jwlc e| 7>' mh e |ymlf| idqglydmk d|

    igygqjdkgi at ycg idqglydmk mh dy| dkiw|yqtbqmw~+ Dh tmwxg eoqgeit hmwki e rdkkdkbbqmw~/ tmwq rmqf d| ceoh imkg+

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    Ekmycgq eixekyebg mh odjdydkb tmwq |ymlf |geqlc ym rdkkdkb|glymq| eki bqmw~| d| ycey dy keqqmr| ycg |geqlclmk|digqeaot+

    Ycgqg eqg e| jekt e| 7/>>> |ymlf| ycey ek dkxg|ymq leklcmm|g hqmj+ Dy| ~qgyyt ymwbc imdkb e jeqfgy ekeot|d| mh |mjekt jeqfgy|+

    \mjg |mqy mh |lqggkdkb ~qmlg|| d| qguwdqgi+

    Ycey| rcgqg ycg ycqgg*|yg~ ~qmlg|| lmjg| dk+

    At keqqmrdkb tmwq |ymlf |geqlc ym e |jeoo kwjagq mh

    dkiw|yqt bqmw~|/ ycg kwjagq mh |ymlf| tmw cexg ym |ywit d|iqejeydleoot qgiwlgi+

    Tmw eo|m cexg ycg eiigi lmjhmqy mh fkmrdkb ycey gelc|ymlf tmw ommf ey d| eoqgeit ~eqy mh e rdkkdkb bqmw~

    15>>+

    ^efd|yek+

    cejjeice||ekNwm|+giw+~f

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