How to do technical analysis, here are some steps:

📊 How to use volume in trading? 📊

Volume tells us how many buyers and sellers are active in the market. The higher the volume, the more reliable the price movement can be.

✅ Trend Confirmation: If the price is going up and the volume is also increasing, it means buying is strong. If the price is going down and the volume is high, then sellers are dominating the market.

✅ Weak Trend Indication: If the price is going up but the volume is decreasing, it may mean that the trend will not last long and the price may come back.

✅ Reversal Identification: If at any point the volume suddenly increases, it could signal the start of a new trend, especially if the price is near resistance or support.

✅ Breakout Confirmation: If a support or resistance level breaks and the volume is high, the breakout will be strong and the price may move further. However, if the volume is low, it could be a false breakout.