#هل_تعلم
Do you know what the volume indicator is? 🤔
The volume indicator is a tool in technical analysis used to measure trading volume over a specific time period.
Simply put, it is the number of contracts, shares, or currencies that have been traded during a specific candle (hour, day, minute, etc.).
The importance of the volume indicator ❌
1️⃣• It measures the strength of price movement: when the price rises along with high volume, this signals that the rise is strong and real.
2️⃣• It helps confirm the trend: a strong trend is often supported by an increase in volume.
3️⃣• It reveals potential reversals: sometimes you see unexpectedly high volume, which could signal the entry of large traders (Smart Money) or the beginning of a reversal.
How to read volume ❌
• High volume = high interest in the coin or stock.
• Low volume = weakness in momentum and a possibility of less volatility.
• If there is a break of a support or resistance level with high volume → the break is considered stronger and more reliable.
• If there is a break with low volume → it may be a false break (Fakeout).
Summary: 👇
• Volume doesn't move the price, but it tells you 'who's behind the movement?'
• One of the strongest tools for confirmation, but it's always better if you use it with other tools like: trend, support and resistance, RSI, and others.
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