Volume Indicator
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Introduction
Volume is one of the most important yet ignored tools in trading. It helps you understand how strong a price move really is. In this lesson, you will learn what volume is and how beginners should use it safely.
What Is Volume?
Volume shows the number of trades or transactions happening during a specific time period. In simple words, volume tells you how much participation is behind a price move.
Why Volume Matters
Price can move up or down, but volume shows whether that move has real strength. High volume means strong interest. Low volume means weak interest.
How Volume Works
- Rising price + high volume = strong move
- Rising price + low volume = weak move
- Falling price + high volume = strong selling pressure
- Falling price + low volume = weak selling pressure
How Beginners Should Use Volume
- Use volume to confirm breakouts
- Check volume near support and resistance
- Compare current volume with past volume
- Use volume with price action
Common Beginner Mistakes
- Ignoring volume completely
- Using volume alone without price context
- Trading low-volume breakouts
- Overanalyzing small volume changes
Best Practice for Beginners
Volume is a confirmation tool, not a signal generator. It works best when combined with trend direction and key price levels. Keep your analysis simple and avoid overtrading.
Conclusion
Understanding volume helps you read market strength more clearly. For beginners, volume is one of the safest tools to confirm price behavior and avoid false moves.
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