VOLUME: THE TOOL THAT REVEALS THE TRUE STRENGTH OF PRICE🤩🔥💵
Volume is one of the most important indicators of technical analysis.
It shows how many people are really buying or selling, and helps confirm whether a movement is strong or weak.
1. What is volume?
It is the number of transactions made in a period of time.
A movement with high volume shows real market interest.
A movement with low volume indicates weakness.
2. Strong movements vs weak movements
• Rise with high volume: buyers dominating.
• Rise with low volume: possible exhaustion or deception.
• Fall with high volume: sales with real pressure.
• Fall with low volume: normal pullback within trend.
3. How to use volume to confirm trends
• If the trend is upward, volume should accompany rises.
• If the trend is downward, volume should accompany falls.
• If volume decreases, the trend may be losing strength.
4. Important signals of volume
• Sudden increase in volume: entry of institutional money.
• Decrease in volume: possible consolidation or lack of decision.
• High volume in key areas: change of trend or manipulation.
Conclusion:
Volume not only accompanies price, it explains it.
A trader who learns to read volume understands when the market is speaking strongly and when it is just moving without conviction.
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