Author, @MrJangKen
ID: 766881381
You've learned how candlestick patterns can reveal market direction — now let's level up with Volume Analysis and Confirmation Signals, the secret sauce pros use before making any move!
🔊 What is Volume in Crypto Trading?
Volume shows the number of coins traded in a given time frame.
🔹High volume = Strong interest or momentum
🔹Low volume = Weak movement, possibly unreliable signals
Always look at volume to confirm if the price movement is legit!
✅ Why Is Volume So Important?
🔹Volume tells you whether:
🔹A breakout is real or fake
🔹A trend is strong or weak
🔹A pattern (like in Part 2) has backup
🔥 How to Use Volume for Confirmation
1. Volume Spike During Breakout
🔹Big candle + High volume = Strong breakout
🔹Big candle + Low volume = Fakeout warning
2. Volume Fades in Consolidation
🔹Sideways price + dropping volume = Big move coming! (wait for direction)
3. Rising Volume + Price
🔹Bullish signal — buyers are confident
4. Rising Volume + Falling Price
🔹Bearish signal — sellers are taking control
🧠 Quick Confirmation Tools (Add with Volume)
1. RSI (Relative Strength Index)
🔹Shows overbought/oversold levels
🔹RSI + High Volume = Stronger signal
2. Moving Averages (MA/EMA)
🔹Confirm trend direction
🔹Price + volume above MA = Bullish confirmation
3. MACD Crossover
🔹Momentum indicator
🔹Use with volume to catch trend reversals early
⚠️ Bonus Tip: Volume on False Breakouts
🔹If price breaks a level but volume is low, be cautious!
🔹That could be a trap for retail traders.
🚀 Final Thoughts
Volume is like the heartbeat of the market. It shows you whether buyers or sellers are truly committed. Mastering this gives you an edge that many traders overlook!
Get ready for Part 4 — we’ll explore chart patterns like triangles, flags, and wedges!
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