🔍 Volume Indicator (VOL) – A hidden tool that reveals market intentions!
The VOL (Volume) indicator shows the amount of contracts or currencies that have been traded over a specific period of time, and it is one of the most important tools that help traders measure the strength of the trend and the entry of smart money into the market.
📈 Price rising with high trading volume? This reinforces the strength of the bullish trend and indicates genuine interest from buyers.
📉 Price falling with high trading volume? This may indicate strong selling pressure or distribution from major players before a larger drop.
⚠️ What if you see an increase in trading volume, but the price and RSI indicator are falling?
This scenario is a warning signal. It may indicate intense selling from institutions or whales, while retail traders remain optimistic. A low RSI indicates increasing selling pressure, and with high trading volume, this suggests that the bearish trend may continue.
💡 Professional tips for using VOL wisely:
Don't rely on volume alone; instead, link it to price and indicators like RSI.
Watch for peaks and troughs in volume; sudden changes may signal strong reversals.
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