Average Daily Volume is also known as Average Traded Volume or Average Volume. It is the average number of shares bought and sold daily, over a period of time. This key technical indicator is frequently used by traders.
Why is Average Daily Volume used?
Average daily volume is used because:
a) It tells the overall count of shares or securities traded during a trading day, that is buying and selling or changing hands of shares on a daily basis
b) It indicates liquidity levels and participation of traders in a particular stock/security.
c) It provides traders with a good idea about the entry and exit levels of a stock
