✔️ Information reviewed and updated in May 2024 by Eduardo López
Volume is one of the most important indicators when choosing which asset to invest in, as it shows how popular it turns out to be for investors. Here we will talk about this indicator and what you should know in order to take advantage of the full potential of your investments.
✨➡What does volume consist of?
The best way to define this indicator is as the number of securities of an asset that are traded in a market for a period of time. In short, the number of transactions that are made with respect to an asset in a week, a month, a day, etc.
The higher the volume of transactions, the more popular the asset, which means that there are more people operating on it and more platforms available to achieve it. It also influences both market liquidity and prices.
✨➡Where can we find the volume?
Most trading platforms offer us this information quickly and by default, which allows us to consult it much faster. You can also search for it on Google thanks to the fact that data such as volume are in high demand by markets and analysts.
✨➡Its importance
Volume can give us a glimpse of investor sentiment, the trend in the market, and the market situation. That is why paying close attention to this indicator is very important in order to know if it is time to buy or sell our assets.
Remember that volume can also affect prices causing both bullish and bearish movements. What's more, it is related to other types of indicators so it is always good to take it into account when evaluating an asset, since sometimes it is better to go for a high volume and others, for a lower one.
