Average Volume

Description

The Average Volume is the total volume for a specified period divided by the number of bars in that same period.

Chart: Average Volume

How this indicator works

  • Compare the Average Volume for the specified period to determine if volume is above or below average.
  • Price movement up or down with relatively high volume is seen as a stronger move than a similar move with weak volume.

Calculation

Simple Moving Average of the Volume for the specified period

Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach to analyzing stocks. When considering which stocks to buy or sell, you should use the approach that you're most comfortable with. As with all your investments, you must make your own determination as to whether an investment in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results.

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