#تعلم_واكسب

The relationship between price and volume in financial markets, and the conclusions that traders can draw from this relationship to make their decisions.

1. Price rises + Volume rises:

Conclusion: This indicates a strong upward trend supported by high trading volume. Confidence in the price increase is high.

Action: It is advised to look for buying opportunities (long entries).

2. Price rises + Volume decreases:

Conclusion: Although the price is rising, the decrease in volume suggests that the upward trend is weak and may be about to reverse.

Action: It is advised to be cautious and consider exiting buy positions at the first sign of reversal.

3. Price falls + Volume rises:

Conclusion: This indicates a strong downward trend supported by high trading volume, confirming selling pressure.

Action: It is advised to look for short selling opportunities (short entries).

4. Price falls + Volume decreases:

Conclusion: A price decline with decreasing volume indicates that the downward trend is losing momentum and may soon reverse.

Action: It is advised to exit short selling positions at the first sign of reversal.

In summary, volume is an important tool for confirming the strength of a trend. The trend (whether upward or downward) is stronger and more reliable when accompanied by high trading volume.