Question 1

What does volume mean on a chart?

Accepted Answer

Volume is the number of shares or contracts traded during each chart period. It is usually drawn as bars along the bottom of the chart, one bar per candle, so taller bars mean more trading took place.

Question 2

Does high volume mean price will go up?

Accepted Answer

No. Volume measures how much trading happened, not which direction price will move next. A heavy-volume candle can close up or down, and high volume can appear at both tops and bottoms.

Question 3

What is the difference between volume and liquidity?

Accepted Answer

Volume counts how much actually traded over a period. Liquidity describes how easily you could trade size right now without moving the price much. They often rise together, but they are not the same measurement.