On any given major stock exchange, from Wall Street to Bombay or from London to Hong Kong, billions of shares are traded each day that represent trillions of dollars exchanged back and forth. This buying and selling action represents volume, which is the result of the exchange of stock or commodity between both buyer and seller. Volume, then, is the prime mover in the price for a given stock or commodity in a given amount of time.

If there is more buying than selling for a ABC stock then what results is the rise in price for that stock. Likewise, if there is more selling then buying in ABC stock then share price is likely to fall in value. This makes the study of volume a valuable indicator to determine if a stock is either in demand or likely to increase in share value in the future.

Many aspiring stock traders practice a style of stock trading popularly referred to as