In trading, volume is the amount of a particular asset that is being traded over a certain period of time. It is often presented alongside price information, as it offers an extra dimension when examining an asset’s price history.
Volume is used most often in shares trading, where it shows the number of shares that are being traded. The number of actual trades made is not given, so if five buyers purchase one share each it looks the same as if one buyer purchases five shares.
In technical analysis, volume is important as it helps determine the significance of price movements. If a price movement is accompanied by a proportionate increase in volume, it is seen as more significant than one that isn’t.