Average Volume

Average volume is the mean number of shares traded per day over a recent period, typically 30, 60, or 90 days. Think of it as the baseline for what normal trading activity looks like for a given stock.

Average volume is mostly useful as a comparison point. If today’s volume is three times the 30-day average, something unusual is happening. If it is below average, the day’s price action may not mean much.

It also tells you about liquidity. A stock that averages 50,000 shares a day is harder to buy and sell in large quantities without moving the price. A stock averaging 10 million shares a day can absorb bigger orders without much impact.