Chapters in Technical Analysis & Trading Tools
Chapter 2 of 10 · 4 min read
Volume, liquidity and delivery
Why price without volume is a rumour, and how liquidity decides your real cost.
Volume is how many shares traded. A move on heavy volume reflects broad participation; the same move on thin volume is easier to reverse.
Practical reads
- Breakout with volume well above average: stronger signal.
- Price up, volume falling: the move may be tiring.
- Very low volume days often precede sharp moves in narrow ranges.
- Illiquid stocks have wide bid-ask spreads: you pay to get in and out.
Key takeaways
- Volume validates price moves.
- Illiquidity is a hidden cost and a risk.
- Compare volume to the stock's own average.
Put it into practice
Open the live page on Market Intelligence and see this concept on real data.
Keep learning
- Circuit limits and price bands · Market Foundations
Education only, not investment advice. Updated 2026-10-09.