📈 Volume Analysis: Breakout Is Not Just About Looking at Candles!
Breakout without volume often becomes a trap!
Volume = the breath of price.
Without volume, the gas doesn't turn on. 😵
1️⃣ Why is Volume Important?
Volume shows how much market participation there is.
• High volume = great interest
• Low volume = market hesitation
2️⃣ A Valid Breakout Must Have Volume
🚨 For example:
BTC breaks through resistance at 110K, but volume is low?
➡️ Potential fakeout, could go back down.
If the breakout is accompanied by exploding volume:
➡️ Validation of many buyers entering = new trend.
3️⃣ Use Volume Bar or OBV (On Balance Volume)
• Price up + volume up = strong bullish signal
• Price up + volume down = potential divergence
• Large volume in S/R area = important zone
4️⃣ Simple Strategy: Volume + Candle
✅ Breakout + full body candle + high volume = entry
✅ Pullback to S/R + low volume = healthy correction
✅ Sudden volume spike = prepare for reversal/continuation
📌 Additional Tips:
• High volume + doji candle = market confusion signal
• Low volume during sideways = not the right time to open position
🔥 A breakout without volume is like someone shouting 'let's go!' but their feet aren't moving.
Have you ever been trapped by a fakeout because of this? Share your experience in the comments, bro!
