Explaine about volume, how I know it, is it plus or minus, how it affects the price?

There are 2 sayings in stock market related to Volume.

  1. Volume confirms the price. 2) Markets can fall on its own weight.

So any price move with strong volume is better then same move on weaker volumes. High volume is especially required for bullish reversal confirmation. But moves with exceptionally high volumes (especially in a long running trend) are considered climatic and could end the trend. Volume has to always be read in context of preceding several bars of the same security.

There are charting packages that allow one to plot Volume differently -

-Each Volume bar shows how much was delivery based volume and how much was intraday volume.

-Volume for green candle is plotted in different color then volume for red candle.

-Volume is plotted in different color when close is above the prior bar close.

There are also volume based indicators that give some idea weather accumulation is happening or distribution is happening, if more money is going in buying or selling etc.

Following is the list of indicators based on Volume (it may not be complete list)

-On Balance Volume (OBV)

-Accumulation-Distribution (AD)

-Money Flow Index (MFI)

-Force Index

-Ease Of Movement

-Volume Oscillator

-Rate Of Change Volume

-Price and Volume Trend

-Chaikin Oscillator

-Chaikin Money Flow


Volumes refer to the number of shares or the number of contracts that are traded on a given day.

If you are talking of comparing the historical volumes to ascertain whether there has been an increase/decrease in the volume of a particular stock/contract, you can do so by accessing this information on the NSE website. Here is the link which gives you the volumes for older dates: http://nseindia.com/products/content/derivatives/equities/historical_fo.htm

As to how Volumes impact prices, I think its been answered here: http://tradingqna.com/2295/how-to-analysis-price-volume-action-with-eg?show=2295#q2295


Thank You
In our chart volume shows in blue bar, how I know it increase or decrease and how to know previous day volume in our chart

Increase/decrease of volume is compared volume on previous bars. To know previous day volume, click on historical chart - daily - volume on previous bar is previous day volume. Place the mouse over the volume bar and you will see script.volume in tooltip.

Thank You.