What Is Volume?
Volume means:
How many coins were bought and sold in a certain time.
If many people trade → volume is high.
If few people trade → volume is low.
That’s it.
🧃 Simple Example
Imagine a fruit market.
If 1,000 people buy apples today → high activity.
If only 10 people buy apples → low activity.
In crypto:
More trading activity = higher volume.
📈 Where Do You See Volume?
On trading charts (like on Binance),
volume appears as bars below the price chart.
Tall bar = high volume
Short bar = low volume
🎯 Why Volume Is Important
Volume tells you:
Is the price move strong or weak?
Price alone is not enough.
Volume confirms the move.
📊 Rule 1: Price Up + High Volume = Strong Move
If price goes up
AND volume is high
That means:
Many buyers are entering.
The move is strong.
Example:
If Bitcoin rises with big volume → buyers are serious.
📉 Rule 2: Price Up + Low Volume = Weak Move
If price goes up
BUT volume is low
That means:
Few buyers.
Move may not last.
It can fall again.
📉 Rule 3: Price Down + High Volume = Strong Selling
If price drops
AND volume is high
That means:
Many people are selling.
Fear is strong.
Downtrend can continue.
📦 Volume in Breakouts
Breakout = Price breaks support or resistance.
If breakout happens with:
High volume → real breakout
Low volume → possible fake breakout
Volume protects you from traps.
🧠 Volume Shows Market Emotion
High volume means:
Excitement
Fear
Big players active
Low volume means:
No interest
Waiting
Weak market
🐳 What About Whales?
Whales = Big investors.
When whales buy or sell:
Volume suddenly increases.
Watching volume helps you see when big money moves.
⚠️ Common Beginner Mistake
Many beginners:
See price going up
Enter trade
Ignore volume
Then price falls.
Always check volume before entering
Volume is like energy of the market.
Price shows direction.
Volume shows strength.
Direction without strength is dangerous.
As a trader, never look at price alone.
Always check volume.