NEWBIE Question: What does the volume show

[VicZA]

Hi All,

Another silly question ... but I have to learn somewhere.:cheesy:

I assume all charting software is very similar but if not please excuse my ignorance. On the chart, just below the indice/trade name there is some info for VOLUME. I know that it show the volume traded for the specific interval you are lookng at but what do the the number mean.

(20) - number in brackets? always 20 so I assume is a setting or range?

first number (either red or green) - I assume this is amount of trades - but why (green) or (red)?

second number (always orange) - I assume this is the moving average?

Please let me know if this is correct and what that (20) means.

Thanks for the help
Vic

 

[Quantt]

Hi All,

Another silly question ... but I have to learn somewhere.:cheesy:

I assume all charting software is very similar but if not please excuse my ignorance. On the chart, just below the indice/trade name there is some info for VOLUME. I know that it show the volume traded for the specific interval you are lookng at but what do the the number mean.

(20) - number in brackets? always 20 so I assume is a setting or range?

first number (either red or green) - I assume this is amount of trades - but why (green) or (red)?

second number (always orange) - I assume this is the moving average?

Please let me know if this is correct and what that (20) means.

Thanks for the help
Vic

Hello Vic, there are no silly questions, so go ahead and ask away!
For this tough, I just cannot picture it, so I am not sure you are looking at volume, can you please post a picture for better understanding?

 

[VicZA]

Hello Vic, there are no silly questions, so go ahead and ask away!
For this tough, I just cannot picture it, so I am not sure you are looking at volume, can you please post a picture for better understanding?

Sure, it's the little graphic (see attached)

I use trading view online charting software.

 

[mpups]

(20) - number in brackets? always 20 so I assume is a setting or range?

refers to 20 period moving average

first number (either red or green) - I assume this is amount of trades - but why (green) or (red)?

refers to whether bar/candle was up or down

second number (always orange) - I assume this is the moving average?

correct

 

[VicZA]

Thanks for the help

 

[tomorton]

Well done VicZA for asking. The only silly question is the one you didn't ask and which then cost you money.

Maybe your next question might be "What does volume tell the trader?" If so, stand by for a shipload of argument from m'learned colleagues.

 

[Dowser]

I'd certainly be interested to hear if any traders use volume data as part of a successful strategy

 

[mpups]

bit of a spike in volume today on NQ... is this a sign?

@dbphoenix