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How do I use volume analysis in trading?

» Market Analysis
  • Volume analysis involves observing the number of shares or contracts traded to gauge the strength of a price movement.
  • Look for high volume at price reversals as a confirmation that the trend may be changing.
  • Use volume indicators like On-Balance Volume (OBV) or Volume-Price Trend (VPT) to compare price action with volume for predictive insights.

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How do I use volume analysis in trading?

Been trying to get my head around volume analysis in trading. Like, how do we really use it? Does it actually help make better trades or it's just all hocus pocus? What's the whole deal behind it, and I mean the nitty-gritty, not just surface info. Has anyone tried it? What was your experience like?

Totally get where you're coming from. How do you differentiate between high volume that signifies a trend continuation and the kind that signals a potential reversal? Any specific indicators or patterns that you look out for when analyzing the volume?

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