📊 Price movement without clear trading volume may be a weaker signal than it seems.
Learn Trading with Derar-Hadri | Common mistake: Ignoring Trading Volume
A trader makes this mistake when they focus only on candles and price, ignoring the volume that comes with the move.
But Volume shows the strength of participation in the market. A breakout accompanied by high trading volume is different from one that happens with weak volume.
Ignoring volume may cause the trader to believe a move that isn’t supported by sufficient liquidity or strong participation from buyers and sellers.
Why is this mistake serious?
It can lead to entering false breakouts, noticing a weakening trend too late, or making a decision based only on the shape of the price.
This reduces the quality of the decision and increases the likelihood of repeating poorly planned trades.
📊 Educational example only:
Let’s assume BTC has broken through a clear resistance, but the trading volume stayed weak.
A breakout may look strong on the chart, but weak volume could mean there are few participants, and the price may quickly return below the level.
Meanwhile, a rise in price with a clear increase in volume may give the move stronger support, but it doesn’t guarantee it will continue.
How do you avoid this mistake?
• Compare trading volume with the previous move.
• Watch volume at support and resistance zones.
• Don’t rely on price alone to confirm a breakout.
• Pay attention to volume spikes without a clear move in price.
• Use Volume with market structure and risk management.
✅ The golden rule:
Price tells you what happened, and volume tells you how strong what happened was.
Do you rely on trading volume before evaluating any breakout?
This content is for educational purposes only and not financial advice.
