What is the Average Daily Volume?
Understanding the average daily volume is important for anyone who deals in the industry of trading. An average daily volume is understood to mean the cumulative amount of shares traded per day, divided by the number of trading periods that take place during that particular twenty-four hour period. There are a number of ways that this type of information can be helpful to investors and financial analysts. Here are some examples of how understanding the average daily volume makes trading easier. One of the advantages of calculating the average shares traded per day is that it makes it very possible to identify broad trends within the marketplace. Usually, average daily volume is analyzed over a period of a calendar month, a quarter, or annually. Doing this type of comparisons of the shares traded on average per day can help the investor or analyst to focus in on a particular point in time where a trend seems to have started, making it possible to narrow the research into what factors le
