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Bid volume is selling volume because it has the potential to move the price down. The selling volume at the bid lowered the price. When a transaction occurs at the ask price, the number of assets changing hands contributes to the ask volume.
The buying volume at the offer pushed up the price. When a market is experiencing more buying volume than selling volume, it means there are more traders buying at the ask price, which has a tendency to push up the price. When a market is experiencing more selling volume than buying volume, it means there are more traders selling at the bid price, which has a tendency to push the price down. However, the relative number of buyers and sellers can change at any moment and, in fact, often changes many times even in short time frames.
That's what causes the markets to move in upward and downward trends rather than only in one direction. Changes in volume—and identifying whether more transactions are occurring at the bid or offer price—give traders short-term indications of where the price might go next.
Therefore, volume can tell you a lot about a particular market, but it is just one tool and shouldn't be solely relied on to make trading decisions. Trading View. CME Group.
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High, Low, and Relative Volume. Buying and Selling Volume. Bid and Ask Volume.
More Buyers or Sellers. Trading Based on Volume. By Full Bio. Adam Milton is a former contributor to The Balance. He is a professional financial trader in a variety of European, U. Advanced search. Options Currencies News. Tools Home. Stocks Stocks. Options Options. Futures Futures. Currencies Currencies. Trading Signals New Recommendations. News News. Dashboard Dashboard. Tools Tools Tools. Featured Portfolios Van Meerten Portfolio. Market: Market:.
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