What information can be found on a stock trading volume chart?


Quick Answer

Stock trading volume charts show the number of stocks that are traded within a specific time period, according to MarketSmith. The volume on this type of chart illustrates the amount of interest in a particular stock.

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Full Answer

The stock trading volume chart also shows liquidity, a stock term that shows potential investors how easy or difficult it is to buy and sell a particular stock. The stock trading volume charts also showcases current stock trends within the market and past and current trends.

This type of chart illustrates price and moving averages. Price and the volume of a stock are only important when combined together. In many cases, the volume of a stock will increase before the price of the stock jumps in value.

The charts show the daily trade values of the stock. Weekly charts, stock prices and volume are also available. Charts are also color-coded. The blue bars on the chart represent the most recent trades. Magenta bars represent prices or volume from a previous trading period, according to StockCharts.com.

Dates are also listed on the charts. Moving averages are defined as the price growth of a specific stock. The red line that cuts through the moving averages represents the 50-day average. Volume by price bars are illustrated with horizontal bars.

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