Volume Analysis for Better Trade Entries

Key Takeaways

• 1Breakout with high volume = real move; low volume breakout = likely fakeout.
• 2Accumulation: price flat, volume rising = smart money loading; distribution: opposite.
• 3Volume spikes at support = buying interest; at resistance = selling pressure.
• 4Use volume moving average (20-period) to identify above/below-average activity.
• 5Climax volume: extreme spike after long move = exhaustion; often marks reversal.
• 6Combine volume with price structure: volume confirms the story price is telling.