Page 195 - THE MARKET WHISPERER

THE MARKET WHISPERER 19 1

Volume of Trade

The volume of trade, or as it is simply known, volume, notes the number
of shares being traded at any given moment. Volume is marked by bars
at the base of the chart. Beneath each Japanese candle is the volume bar
appropriate to that timeframe. If the Japanese candle represents five
minutes, the volume will present five minutes, and if the candle is green,
the bar will also be green. Occasionally, according to the trader’s choice or
the platform’s limitations, the color of all volume bars will be identical and
it will not be possible to distinguish between down volume and up volume.

Volume for TEVA in Five-Minute Candles:

For the five-minute candle marked on the chart above, beginning at
14:50, volume shows 45,010 shares. To see the volume for each candle,
position the mouse on the candle and press the mouse button (this may
vary, depending on the platform).

Volume indicates the strength of the trend. Some claim, however, that
because every transaction involves a buyer and a seller, or in other words,
someone who thinks the stock is cheap and someone else who thinks it
is expensive, the sum total of opinions in the market is zero and volume