What It Is
Volume measures how much of an asset was traded during a given period. Each bar represents the total number of shares, contracts, or coins exchanged. It's the market's way of voting with real money.
Price tells you direction. Volume tells you conviction. A price move on high volume has more meaning than the same move on low volume. Think of it as the difference between a whisper and a shout.
Volume analysis helps answer critical questions: Is this breakout real or a fake-out? Is the trend healthy or exhausted? Are smart money buying or selling? Without volume, you're trading blind.
Volume Rules to Remember
Volume Trading Strategies
Volume Trading Strategies Volume Profile Trading Using volume at price to identify high-volume nodes and value areas...
Reading institutional activity through volume patterns...
Identifying reversals through price-volume divergence...
Volume profile trading, accumulation/distribution analysis, and divergence setups.
When in doubt, check the volume. If a breakout, pattern, or signal doesn't have volume behind it, treat it with suspicion. Volume is the lie detector of the market — price can deceive, but volume rarely lies.
Continue through core concepts
Compare this reference with related structures and readings before applying it to a live chart.