Volume Do Not Predict Price! - It Explains It!
Most traders look at volume the wrong way.
They expect volume to tell them where price will go next.
But volumes real job is much more important:
Volume explains why price moved the way it did.
If you learn to read volume correctly, price action becomes clearer, not noisier.
1 Price Up + Rising Volume = Commitment
When price moves higher and volume expands, it means buyers are committed, not just reacting.
This is not random buying.
This is participation.
Rising volume during an impulse confirms that the move is supported by real interest, not just thin liquidity.
Strong trends are built on expanding volume.
2 Price Up + Falling Volume = Warning
When price continues higher but volume dries up, something changes.
The move still exists... but conviction doesnt.
This often signals:
- exhaustion
- a potential pause
- or an upcoming correction
Thats when professionals stop chasing and start managing risk.
3 Sideways Price + Rising Volume = Accumulation or Distribution
This is where most traders get confused:
Price isnt moving much, but volume is increasing.
Thats not boredom.
Thats positioning.
Large players dont chase price.
They build positions quietly while price looks dead.
Breakouts that follow these zones tend to be fast and decisive, because the work was already done.
4 Breakouts Without Volume Are Suspect
A breakout candle looks exciting.
But without volume, its just a move, not a decision.
Low-volume breakouts often lead to:
- fakeouts
- traps
- fast reversals
Volume doesnt need to explode... but it needs to confirm participation.
The Big Picture
Volume is not a signal by itself. Its context.
Price tells you what happened, while