📊 Volume speaks… Do you know how to read it?
Volume = the amount of trading that occurred over a specific period.
But the key is not just that Volume is high…
The key: What is the price doing with it?
🔥 3 scenarios you must know:
1️⃣ Breakout + High Volume
The price breaks a key resistance with a clear increase in Volume.
➡️ The breakout may be stronger, but it does not mean it’s guaranteed.
2️⃣ Breakout + Low Volume
The price breaks resistance, but Volume does not support the move.
➡️ Beware of Fakeout.
3️⃣ Decline + High Volume
Strong selling pressure and high activity.
➡️ Watch whether the price breaks a key support or absorbs the selling and returns above it.
🎯 Quick example:
BTC at resistance of $100,000.
Breaks through to $101,000:
📈 High Volume + Close above resistance + Successful Retest
= Relatively stronger confirmation.
Whereas:
📈 Rapid breakout + Low Volume + Rejection back below $100,000
= Higher probability of Fakeout.
⚠️ The Golden Rule:
Never use Volume alone.
Always link it with:
Trend + Market Structure + Support/Resistance + Liquidity + Price Action
🛡️ Risk Management:
Volume gives you information, not a guarantee.
Set your Stop Loss and Invalidation Level before entering.
💡 Lesson of the day:
“Price tells you what happened…
Volume helps you understand the strength of what happened.”
$ZEC $BTC #ETH ETF funds recorded inflows
