• Stock price movement is based upon the ebb and flow of shares being bought and sold

• Huge moves up or down are based on high amounts of volume

  • • This volume can be all at once or over several days, weeks, or months of trading

    • Slowing volume can often mean that the sentiment of the current direction could be changing

• Scarcity can also play a role in the movement of price

  • • In general, when the market desires more shares, price rises.

    • Price continues to rise as long as people are willing to pay that price.

    • GME was a perfect example of a stock that was heavily shorted (see Buying vs Shorting), shares being unavailable to be purchased so price rose from $20 to as high as $483 in just a matter of weeks

• Volume can be industry or specific

  • • See the average volume of a stock

    • If volume > average is great then there will be greater volatility and the security price will move based on which side has greater pressure (buyers or sellers)

    • Lower volume < than average volume can move a security price, but could regain ground from the prior day is the volume increases

see Price Action and Volume and more about the GME incident that made millionaires, led to others losing everything, and the potential of hedge funds being down millions.