Day 03 of Learning Trading š
Needed Volume and Candle Formation:
When a price candle (like a bar or a candlestick) is formed in the market, it often has an associated volume that indicates how much trading activity occurred during that period. If a candle closes with lower-than-expected volume, traders may note this as a "volume gap."
Market Reversion:
The theory is that if thereās a significant volume that was not traded during that candle (i.e., needed volume), the market may later return to that area to "fill" the volume. This means that as the market moves, traders might see a pullback or retracement back to that price level where the volume was insufficient, allowing for more trades to occur.
The Chart is of $BTC on 4h time frame
