High volume gets attention, but it does not automatically mean the move is healthy. Volume can appear during accumulation, distribution, liquidation, or panic. The structure around the volume matters.
If high volume appears at support and price closes strong, that can show demand. If high volume appears into resistance and price fails, that may show sellers absorbing buyers. The same volume number can mean different things depending on location.
I like combining volume with levels. Where did the volume happen? Did price close above or below the key zone? Did the next candle confirm or reject the move?
Volume is useful, but only when it answers a question. Without structure, it can become another noisy indicator.
If high volume appears at support and price closes strong, that can show demand. If high volume appears into resistance and price fails, that may show sellers absorbing buyers. The same volume number can mean different things depending on location.
I like combining volume with levels. Where did the volume happen? Did price close above or below the key zone? Did the next candle confirm or reject the move?
Volume is useful, but only when it answers a question. Without structure, it can become another noisy indicator.
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