Volume definition
It is important to know what the volume traded for a company means.
The volume is just the number of shares that are traded of a specific company in a day. If a 10 dollar stock had 500,000 shares traded in a day that means 5 million dollars worth of investment traded hands in one day for just one company.
It is very humbling to see how much money in investments passes through hands each day at the New York Stock Exchange. Trillions and Trillions of dollars really helps one to be able to put things in perspective. But I digress.
If a company is trading at a much higher level of volume over the past couple of days compared to what it usually trades at, then you know something is up. That means that much more money has been flowing through the stock than usual which means someone knows something.