Stock volume is a measure of the number of shares that have been traded for a given period. In simple words, it represents the number of times a share has been bought or sold over a particular span. Higher the volume, more active the share is.
Volume price strategy is particularly important for intraday traders as it helps them identify liquid stocks for their daily trade. Although it is such a powerful tool, not many people know how to use it to increase their profits and minimize their risks.
In this article, we will tell you how to use the volume price strategy to invest in the share market and make profitable trades.
Guidelines for Using Volume
Volume plays a critical role in determining the future price movement in the stock price. Trading decision based on the stock volume often helps you in taking the correct positions. Stock having higher volume determines the strength or weakness of the move.
Volume and Interest of Market
Volume in a stock certainly represents the sentiment of a stock. Like for example, in the rising market, the rising volume in stock indicates that there are more buyers which will push the prices of the stock up. However, if the stock price is increasing and volumes are lowering, this is a sign of reversal and a warning to the traders. Thus, price strategy can be concluded with the fact that fall or rise in stock price with lower volumes is not a signal. But a drop or rise in the stock price with higher volumes is a stronger signal which might signify the changing fundamentals of a stock.
In order to take advantage of volume price strategy, you need a demat account or free intraday trading account to trade in the securities. You may open demat account online with Kotak Securities. They ensure the best services and experience to their clients in the stock market.
Let us now learn about the benefits of investing in the share market by openinga free intraday trading account with Kotak Securities.
Benefits Of Opening Free Intraday Trading Account With Kotak Securities
The Free Intraday Trading (FIT) account of Kotak Securities offers an unbeatable experience at the lowest rates. The benefits of FIT are as follows.
- There are no brokerage charges irrespective of how much you trade, on what platform you trade or in which market segment you trade.
- You get unlimited access to share market research reports from the award-winning in-house research team.
- You can quickly open FIT by contacting the customer care team.
- Their mobile application – ‘Kotak Stock Trader’ provides you the access to view your complete portfolio using your mobile phone.
- By downloading the Keat Pro X on your laptop or PC, you can take the right intraday trades using strategies like price volume strategy. You can even track your intraday position and watch lists.
- If you do not want to download the Keat Pro X, you can use the Trade Smart Terminal.
The above mentioned benefits make Kotak Securities the best broker for investing or trading in the stock market.