What is the role of volume in technical analysis?

To predict future stock prices To identify support and resistance levels To confirm trends and patterns To measure market volatility

How is volume calculated in a stock trade?

By adding the number of shares bought and sold By multiplying the number of shares bought and sold By taking the difference between the number of shares bought and sold By considering only the number of shares bought

What does high volume typically indicate in the context of stock trading?

Low investor interest Significant institutional activity Market manipulation A lack of liquidity

How can volume be used to assess the strength of a trend?

By comparing current volume to historical averages By analyzing the volume of individual trades By looking at the volume of related securities By using volume oscillators

What is the significance of low volume in a stock trade?

It suggests strong investor conviction It indicates a lack of interest from institutional investors It signals a potential market reversal It is a sign of a healthy and stable market