Volume Tells the Truth While Price Often Lies
Price is what everyone watches, but volume is what reveals intent. Candles can move for many reasons, but volume shows whether that move has real participation behind it. Understanding volume changes how you read the market completely.
A price move without volume is weak. When price rises but volume stays flat or decreases, it usually means the move is being pushed by a small group of traders. This often leads to reversals. Strong trends are built on increasing volume, not on thin participation.
During breakouts, volume becomes even more important. A true breakout is supported by a clear expansion in volume. This shows commitment from buyers or sellers. If price breaks a key level quietly, without volume, it is often a setup for a fake move.
Volume also explains pullbacks. In healthy trends, pullbacks happen on lower volume than the impulse move. This indicates that selling pressure is limited. When pullbacks show rising volume, it suggests distribution rather than normal correction.
Another powerful signal is volume divergence. When price makes a higher high but volume fails to increase, momentum is weakening. The trend may continue for a short time, but risk is rising. The same applies in downtrends when selling pressure fades.
Volume spikes often appear near turning points. Sudden high volume after a long trend can indicate exhaustion. This is not always an immediate reversal signal, but it warns that the current move is losing efficiency.
Most importantly, volume shows where the real battle is happening. Price shows the result. Volume shows the effort. When effort and result are not aligned, something is about to change.
Traders who rely only on price react late. Traders who watch volume understand what is happening beneath the surface. In crypto, where volatility is high and traps are common, volume is one of the few honest signals available.
