📊【Trading Volume: The Overlooked Control Signal】
Many people only look at candlesticks but overlook volume. However, the real turning points in price movement are often hidden in trading volume.
🔍 Key Logic of Trading Volume:
✔ For a trend to change, volume must increase;
✔ If the trend has not changed, volume should not increase.
📈 A sudden increase in volume during an uptrend is not acceleration, but a signal of a trend change, or even a warning of a top—what is referred to as "high volume leads to high prices";
📉 To reverse a downtrend, one must use even greater force to continuously pile on volume to potentially reverse the trend.
During a sideways phase:
✔ If there is no increase in volume, it is highly likely that the original direction will continue;
✔ Once there is a breakout with increased volume, the direction is basically clear.
Remember this: Volume change is the prelude to price change.
If you don't understand the volume, no matter how many technical indicators you have, it is just like looking at flowers in the fog.