points to the amount of a financial instrument that was traded over a specified period of time. It can refer to shares, contracts or lots. The data is tracked and provided by market exchanges. It is one of the oldest and most popular indicators and is usually plotted in colored columns, green for up and red for down , with a moving average. It is one of the few indicators that is not based on price. High points to a high interest in an instrument at its current price and vice versa.
A sudden increase in trading points to a increased probability of the price changing. News events are typical moments when can increase. Strong trending moves go hand in hand with an increased trading . It can therefore be seen as a measure of strength. One would expect high buying at a and high selling at a . There are several ways to use in a trading strategy and most traders use it in combination with other analysis techniques.