Tuesday, February 13, 2018

Can someone help me understand volume a little bit more?

So if a stock has 2M volume at the moment, and its normal volume is 500K. This means volume is quadruple what it normally is.

So 2M volume essentially means there's 2 million people waiting in line to buy/sell this stock, correct?

If so, what would cause the volume to shrink down from 2M to 100,000 within minutes? Does this mean 1.9M people just made deals to buy/trade stocks that the current price?

Why do people generally assume a stock with higher volume will move up? What is the thinking behind this? Doesn't a high volume signal a strong sell point just as equally as a strong buy point?



Submitted February 13, 2018 at 12:20PM by Tconzz22 http://ift.tt/2Ci5ZHL

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