How to Track Stock Exchange Volume Levels

by D. Laverne O'Neal

Stock exchange volume represents the number of shares traded on that exchange over a prescribed period of time. Stock exchange volume is an indicator that is used to analyze the worth of market movement. For example, if the market moves in one direction, the volume during that period helps analysts determine the strength of that movement. Price movement that is buttressed by higher volume is believed to be more significant than movement attended by lower volume.

Find a stock charting website. These sites abound. Some require a fee, while others are free.

Open a stock price chart and type in the symbol for a large stock index. The S&P 500 is a good example. A large index helps you track a broader segment of the market. Tracking a smaller index is less useful.

Select the trading volume indicator. It may be prominently displayed near the top of the screen. Look for the volume for a particular trading day. If the price has gone up, the day will be labeled as an accumulation day. If the price has dropped, the trading day is considered a distribution day.

Monitor the volume of the same exchange over a period of weeks or months. This will give you an idea of movement over time, which lends perspective on how the markets work.

Tip

  • If you prefer to track the volume of a single stock, use a stock charting tool, type in the stock symbol and look for the volume figure. It should be prominently displayed above or beneath the resulting chart. You should also be able to find the stock's historical volume for a given period.

About the Author

D. Laverne O'Neal, an Ivy League graduate, published her first article in 1997. A former theater, dance and music critic for such publications as the "Oakland Tribune" and Gannett Newspapers, she started her Web-writing career during the dot-com heyday. O'Neal also translates and edits French and Spanish. Her strongest interests are the performing arts, design, food, health, personal finance and personal growth.

Photo Credits

  • Jupiterimages/Photos.com/Getty Images