Volume trading is a trading strategy in financial markets that is based on analyzing the volume or amount of assets traded during a specific period.
The purpose of volume trading is to find out the level of demand and supply in the market by examining volume movements. Generally, volume trading is used in technical analysis to predict future price movements.
Trading volume indicators often also incorporate moving averages, measuring the volume of candlesticks in a given period and generating an average. This gives traders an additional tool to gauge the strength of current market trends.