💡How do you analyze volume to discover the upcoming movement?
Trading volume is the "voice of the market". Ignoring it means you are overlooking one of the strongest indicators behind price movement.
🔹 Why is volume important?
Because it reveals the strength of the movement: Are buyers/sellers serious? Or is the movement weak and about to reverse?
🔹 How do you read volume professionally?
1. Upward movement + increasing volume = Strong reliable movement.
2. Upward movement + low volume = Likely weakness or manipulation.
3. Downward movement + high volume = Real selling, pay attention to demand areas.
4. Downward movement + low volume = Temporary correction or slight manipulation.
✍️ Practical example:
The price broke resistance after a long fluctuation, but the trading volume was clearly low. The entry was ignored, and after a few minutes, the price returned to decline, revealing it was just a false break. Reading the volume saved the trade from a potential loss.
If you made it this far, write 'done' so you don't miss the next lesson ❤️
📌 Next lesson:
How to combine price action with indicators to double the accuracy of your decisions?