What Is Volume?

Volume is the number of shares traded in a time period. Higher volume usually means more participation and stronger conviction.

• High volume: stronger interest, more “confirmation”
• Low volume: less interest, moves can be unreliable
• Compare volume to the stock’s “normal” volume (recent average)

What Is Price Action?

Price action is simply how price moves and reacts at key areas (support, resistance, trends). It focuses on structure and behavior instead of piling on indicators.

• Trend direction (higher highs / lower lows)
• Reactions at support and resistance
• Candle “story” (strong closes vs weak closes)

Volume as “Confirmation”

Volume doesn’t predict the future, but it can confirm whether a move is likely meaningful.

• Breakout + high volume: stronger chance it holds
• Breakout + low volume: higher chance of a fakeout
• Big move + fading volume: momentum may be weakening

Common Patterns (Simple)

• Trend push: rising price with steady/raising volume
• Exhaustion: huge volume spike after a long run (can signal a top/bottom)
• Pullback: price dips on low volume, then resumes trend (often healthier)
• Reversal attempt: price breaks a key level with increased volume

The key is context: volume means more when price is interacting with important levels.

Keep It Practical

Use volume and price action as a simple checklist — not a guarantee. If the setup looks clean and volume supports the move, the trade idea is usually stronger.

• Mark obvious support/resistance first
• Watch how price behaves at those levels
• Use volume to judge “strength” behind the move
• Still use risk management (stops + position sizing)