Trading volume increases in advance Price is still fluctuating Trading: Position in the direction is pre-embedded Increase position when a true breakout occurs This is a proactive layout strategy.
Features: Multiple volume increases at low levels without further declines Each sell-off is quickly bought back Trading: Breakthrough on the upper edge of the range with volume to follow This is the 'true bottom' rather than a rebound bottom
Logic: The price moves faster than the trading volume, indicating that liquidity has been exhausted.
Characteristics:
Continuous K-line advancement Trading volume has not increased in sync → The main force uses a small amount of funds to manipulate the price
Trading: Enter the trend at the low point of the first volume-expanding K-line on a pullback Once a volume stagnation occurs, take profits in a timely manner.
Logic: Decreased volume indicates observation, increased volume represents a choice of direction.
Conditions:
Continued decline in trading volume within the range Sudden appearance of an increased volume candlestick that breaks the range Trading: Increased volume breakout upwards → Follow long Increased volume breakout downwards → Follow short Stop loss: Inside the range.
Increased volume with rising prices, decreased volume with falling prices trend strategy
Logic: Look at which side is more "forceful".
Judgment:
When prices rise, trading volume significantly increases. When there is a pullback or a decline, trading volume continues to decrease. Trading: Only go long, do not short. Enter long positions near previous support or previous lows. This is one of the most stable trend judgment methods.
Logic: Extreme trading volume + Price quickly negated = Main force reversal.
Conditions:
Single K-line trading volume is more than 3 times the average volume. Simultaneously appears long upper shadow or long lower shadow. Trading: High volume long upper shadow → Short High volume long lower shadow → Long Stop loss: Shadow extreme value.
Logic: Price reaches a new high (or low), but the volume does not follow, indicating a loss of momentum.
Conditions: Price reaches a new high, but trading volume is lower than the previous wave of increase or price reaches a new low, but trading volume decreases Trading: High volume contraction → Short selling Low volume contraction → Going long
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.
Trend acceleration strategy after "secondary exhaustion" of volume
Logic:
If there are two clear volume exhaustions during a trend (the volume decreases during pullbacks), it usually indicates that the opposing force is completely depleted, and the third time often accelerates directly.
Method:
Confirm the main trend direction Observe two consecutive pullbacks with decreasing volume Follow the trend during the third activation Stop loss: Latest pullback low/high point
Applicable: Capturing "the fastest segment" in a trending market.
Volume spike with "body not following" short squeeze/long squeeze strategy
Logic:
If a long shadow appears + volume spikes, but the body is very small, it indicates that a large amount of transactions occurred in the shadow area, which is an extreme release of emotion. This type of trend often reverses.
Approach: Volume spike with long lower shadow, small body → Go long
Volume spike with long upper shadow, small body → Go short Use the extreme points of the shadow as stop loss
Advantages: Very small stop loss, high cost-performance ratio.
Oscillation Range 'Volume Distribution Imbalance' Direction Judgment Strategy
Logic:
If the volume is consistently low during upward movements and high during downward movements within the range, it indicates that the selling pressure is more proactive, making a breakout more likely to occur downward.
Approach:
Count the volume of multiple upward/downward movements within the range Downward volume significantly > Upward volume Wait for the lower edge of the range to break with increased volume Take a short position accordingly
Stop Loss: Above the middle axis of the range
Core: Whoever has the volume, whoever takes the initiative.
Rebound Strategy of 'Volume-Price Dullness' in Downtrend
Logic:
When prices continue to hit new lows, but trading volume no longer expands and gradually decreases, it indicates that bearish momentum is weakening, and the market enters a 'dull' state.
Approach: Observe that lows are continually refreshed Trading volume is lower than the previous round of decline The first strong bullish candle appears Take a light long position, targeting the previous resistance level Stop-loss: Below the latest low Applicable: Capturing safe rebounds at the end of a decline.
The "pullback confirmation short" strategy after a failed breakout
Logic:
Many false breakouts will first surge with high volume beyond key levels, but are quickly pulled back into the range. If it is a true breakout, the price should stabilize; if the breakout cannot be maintained, it indicates that the long positions are trapped.
Approach:
Price breaks through key resistance with high volume Retraces below the resistance within 2–3 candles Volume significantly decreases during the pullback Short when the pullback ends and weakens again Stop loss: High point of the false breakout Key point: High volume ≠ success; being unable to hold is the key.