** This guide shows intermediate traders how to spot volume spikes and dips near support/resistance to make sure breakouts are real and avoid getting stopped out by fake-outs.
**š Stop Fake-Outs: The Volume Check**
*** The Signal You Need for Good Trades
**** A Quick Guide for Intermediate Traders to Cut Through the Noise
As a trader who's been around the block, you get support and resistance. You draw your lines, set alerts, and wait for the price to jump. But how often does the price blast past your line, only to U-turn and trigger your stop-loss? That's a fake-outāthe thing we all hate. To keep your money safe from these false moves, you don't need another fancy tool; you need to watch the volume.
** The Volume Confirmation Rule**
Think of trading volume as the juice that makes prices move. If a move is real ā like a trend change or a break past a key level ā it needs the market to really believe in it. That belief shows up as high volume.
Here's the simple rule for checking volume:
* **Bullish Breakout (Price going up):** The candle that closes above resistance should have way more volume than the average of the last 10-20 candles. If the price goes up but the volume is weak, it's not a strong move and is likely a fake-out.
* **Bearish Breakdown (Price going down):** Same deal ā the candle closing below support needs high volume. Low volume means not many people are selling at that price, and it might bounce back soon.
**Think of it like this:** Imagine people trying to smash through a door. If only a few push (low volume), they'll fail. If a ton of people push (high volume), the door breaks ā that's a real breakout.
**Wrapping Up: Your Next Move**
Start using volume checks in your trades now. Don't just watch where the price closes; check the volume below the candle. If the volume is normal or low, hold off. A breakout with low volume is risky. Wait for the backup, wait for the volume, and your trades will get way better.
**Disclaimer* I'm not a financial advisor. This is just for learning. Crypto trading is risky, so always do your own homework before trading.
* Learn the one simple trick that tells you if a breakout is real or just a fake-out that will cost you money. Start checking volume today!@Injective
