Traded Volume

Traded Volume is the total number of shares or contracts traded for a security during a specific period of time. While average volume is the volume traded per unit of time. Higher the volume of a stock higher will be its liquidity in the market.

Example

Suppose a trader-1 buys 1000 shares of Apple, the trader-2 buys 1500 shares of Apple and  trader-3 sells 1000 share of Apple to a trader other than 1st and 2nd traders above, in a period of one hour. Then, total traded volume for that stock in that one hour is 3500 shares. Simply put, Volume traded is the sum of all completed trades.

Volume is analyzed by technical analysts to confirm the price trends by backing a price trend with a volume trend. Similarly, volume helps to confirm price reversals in case the prices move aggressively upwards or downwards.