All you need to know about volume

What is ‘Volume’ Volume is the number of shares or contracts traded in a security or an entire market during a given period of time. For every buyer, there is a seller, and each transaction contributes to the count of total volume. That is, when buyers and sellers agree to make a transaction at a certain price, it is considered one transaction. If only five transactions occur in a day, the volume for the day is five. Volume as Indicator ‘Volume’ Volume is an important indicator in technical analysis as…

The Law of Demand

The law of demand and it’s application The law of demand and it’s application to fundamental analysis of commodities rests upon an understanding of consumer behavior. The factors which characterize consumer choice and how the market place reflects individual consumer responses are key components of this economic theory. Understanding what factors have affected demand in the past will help to develop expectations about demand in the future and its impact on market price. Demand for a particular product or service represents how much people are willing to purchase at various prices.…