Chapter 2. What is volume

These are my notes on the chapter, What is Volume, from the book, Volume Trading.

Volume

The total number of contracts or shares exchanged between buyers and sellers during a specific day or time.

Notes

  • Jayesh encourage you to think about volume more deeply
    • Volume is
      • energy
      • life
      • enthusiasm
  • If stock is trading in the same price range at same volume for ten days, there is no enthusiasm or energy to trade the stock
  • If the volume jumps from 2,000 to 50,000 the next day, and then to 100,000 the following day, would you that volume has gained energy, life, or enthusiasm?
  • Uses an analogy to describe the relationship between price and volume
    • Price is the rocket
    • Volume is the rocket fuel
    • When fuel ignites, it thrust and propel rocket in desired direction
Index