Trading Volumes: How to Read and Why They Matter📊

-When the price moves, it's important not only to know where it goes but also with what volume. Volumes show how strongly market participants believe in the movement.

💡 What is volume?

Volume is the number of coins that have been bought and sold over a certain period of time.

-High volume = activity, interest in the asset

-Low volume = sluggish market, possible false movement

🟢 How to interpret?

-Sharp increase in volume + price rise = buyers dominate → signal to enter (upon confirmation)

-Increase in volume + price drop = strong selling → be cautious, possible liquidation

-Price rises, volumes drop = trend weakens → possible reversal

-Flat (sideways) + spike in volume = preparation for breakout from the range

On Binance, volumes are visible under the chart — green and red bars.

-Green = buying

-Red = selling

🛠 Combine with patterns!

Is a hammer appearing? Check: is there volume at that moment?

See an engulfing pattern? Strong volume → more trust in the reversal

🧠 Main Points:

-Do not trade solely based on volumes

-Use them as confirmation for candlestick patterns, levels, trends

-Volume is context. Without it, candlesticks can be misleading.