Volume Breakthrough · Pullback with Decreased Volume for Long / Short
Logic: A true breakthrough must have increased volume, and a healthy pullback must have decreased volume.
Conditions:
When the price breaks through the range / key high or low points, trading volume ≥ 1.5 times the average volume of the previous 10 bars
Subsequently, during the pullback, the trading volume significantly decreases.
Trading:
Break up → Pullback with decreased volume for long
Break down → Rebound with decreased volume for short
Stop Loss: Pullback structure breakdown.