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## Comments

"...today's close is greater than some fraction of the 1 day ago close, say * .8, and today's close is less than some larger fraction of the 1 day ago close, say *

.9"But, in fact, there are no rules, so any number of shares can trade at any price - or a price can be skipped altogether, depending on how many traders have shares to sell or buy at each price.

So, at each price, there are a certain number of shares for sale, and a certain number of dollars wanting to buy those shares. If the numbers are exactly equal, the trade(s) happen and price doesn't have to move at all. Let's say there are 2000 shares for sale at 9.00 and exactly the amount of dollars to by those shares. The volume would 2000 and the range would be 0.

If the number of shares for sale and then number of dollars are not equal, then price has to move if all traders are going trade.

So, let's say there are 500 shares for sale at 9 dollars, but there are dollars to buy 2000 shares. 500 shares will sell 9 dollars and that's it. If the buyers still want 1500 more shares, they will have to pay up. How much they have to pay up depends on the number of shares at each price above 9.

So let's say one this day there are 100 shares at 9.05, 400 shares at 9.06 and 1000 shares at 9.07, and let's say all those trades happen. The volume for the day is 2000 and the range is 7 cents.

But let's say it happens differently. Again, 500 shares sell at 9.00, leaving 1500 to be bought.

But this time, there are, say, 300 shares at 9.05, 200 shares at 9.06, 100 shares at 9.07 400 shares at 9.08 and 500 shares at 9.10. And let's say all those trades happen. The volume for the day is the same 2000 shares, but the range is 10 cents, not 7 cents, because there were fewer shares available up to 7 cents, so prices had to go higher.

Very simplified, but I hope that helps.