Stock Volume Definition: Stock volume refers to the number shares of a stock that are traded during a given period of time. For example, today (NASDAQ:TOPS) has a volume of 70 million shares for the day; it means that investors exchanged 70 million shares during the course of one trading day. Those stocks which registered the highest volume for a given period of time would be by definition considered the most active stocks. A list of the most active stocks (i.e. stocks with the highest trading volume) for a given period of time helps illustrate which companies investors are focusing on.
Ordinarily volume should increase in the trend direction. In rising trends we want high volume on rises and near tops, and low volume on falling prices and near bottoms. This development signals a healthy stock with ever more optimistic investors, and strengthens an overall positive trend.
Similarly high volume on falling prices and near bottoms in a falling trend will confirm the overall negative trend and indicate it will continue to fall.
Deviations from the above warn of a coming trend reversal.
Volume development can indicate trading opportunities. When the correlation between price development and volume development is clearly positive in falling or sideways trends, this may open up for good short term trading opportunities. Such situations often involve high risk, but the upside can be very good.
Throughout the past couple of years, Top Ships has informed investors of several vessel acquisitions that already have binding contracts surrounding them. This ultimately will help to continue the strong revenue growth that we’ve seen from the company.
Today, it’s clear that the bulls are winning the argument. Ultimately, Top Ships is finding its way toward the top and we can see a $200 per share in very short near future.