Many novice traders make the mistake of looking only at the price and forgetting the most important thing, which is volume.
Why Volume Matters
The price can move due to manipulation or lack of liquidity, but volume tells you the truth about the strength of the movement.
Price rising with Low Volume is a trap. If there is no gas behind the rise, the price will fall as fast as it rose.
Price rising with High Volume is a confirmation. It means that institutions and whales are buying and the trend is real.
The Breakout Rule
Never trust a breakout if you don't see a large volume bar accompanying it
Without Volume It is likely to be a false breakout to trap buyers
With Volume It's a green light to look for an entry on the retest
The price is the car and the volume is the gasoline A car without gasoline doesn't get far
