Volume is not just about highs and lows! Use 'Volume Analysis' to capture hundredfold coins
Many people only pay attention to volume increases or decreases, but overlook the position of volume in the price structure.
Today, this chart teaches you how to use 'POC + Low Volume Advances' to determine bullish and bearish rhythms.
1. Bearish Case
Failed bottom formation → Support becomes resistance
The POC area is the location of the highest volume, and when the price tests this area, it gets pushed back down.
Subsequent declining phases accompanied by low volume indicate bearish dominance; a pullback is a short entry point.
2. Bullish Case
Successful bottom formation → Demand area support
After breaking through the POC area, a pullback becomes the best entry point.
The volume during the upward advance is actually low, indicating no resistance for the bulls, and strong rebound momentum.
Key Takeaways:
The POC area is a key position for bullish and bearish transitions.
Low volume advances often signify trend continuation.
Combined with support and resistance levels and structural analysis, it can greatly enhance entry precision.
Want to learn more practical skills on 'Volume + Structure'?
