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Volume refers to the number of shares traded in a stock or contracts traded in futures or options contracts.
When volume increases with price, the uptrend is considered strong since the price trend is supported by the volume increase, therefore activity is high.
It is considered a strong downtrend when volume increases and the price declines.
Volume can be plotted from the indicator section in TradePoint and Zone.
It is also possible to plot a moving average of volume.
A moving average of volume allows us to determine whether volume is increasing or decreasing.
A volume above the moving average indicates that the trend is strong and that the volume is increasing.
The indicator table value in TradePoint & RZone also provides you with a list of all values of Volume indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.
Volume is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.
Volume is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts.