loading...
The foundational volume indicator showing trading activity.
Volume measures the total number of shares, contracts, or coins traded in a given time period. It's the most fundamental confirmation tool in technical analysis — it tells you how much conviction is behind a price move.
Key insight: Price tells you what is happening. Volume tells you how meaningful it is. A breakout on heavy volume has far more significance than one on light volume. Volume is the fuel that drives price — without it, moves lack conviction and often fail.
In crypto markets, volume data comes from exchanges and can vary significantly between platforms. Focus on relative volume (compared to the asset's own average) rather than absolute numbers.
Volume confirmation: Rising price with rising volume confirms the uptrend. Falling price with rising volume confirms the downtrend. This is the most basic and essential volume signal.
Volume divergence: Rising price with declining volume is a warning — fewer participants support the move. This often precedes reversals, especially at resistance levels.
Volume spikes: Sudden, dramatic increases in volume often mark the beginning or end of major moves. Climactic volume at the top of a rally frequently signals a blowoff top. Climactic volume at the bottom often marks capitulation.
This indicator works best when combined with price action analysis. Never trade indicators alone - always confirm with the chart.
Indicators confirm what price action shows. They don't replace it. Never trade based on an indicator signal alone. Always combine with chart structure, pattern recognition, and volume analysis.
The Academy teaches when to use this indicator, when to ignore it, and how to combine it for high-probability setups.
Join Academy →