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Volume Trading Trick Will BLOW Your Mind

TradingLab1:05

Transcription

At the bottom of a market, if the price spikes up, you should see the volume rising. So, every time you see a spike up, the volume should rise on that spike. That's accumulation.

In the distribution stage, as the price falls, the volume should rise. And as the price spikes up, the volume should fall.

In a bullish market, as price rises, the volume rises. As price falls, the volume falls.

In a bearish market, as the price falls, the volume rises. And as the price rallies, the volume falls.

Let's try here. Price is starting to rise. Meaning if we want this chart to be heading upwards, volume should be rising alongside with it, which is exactly what happens. So based on this information, this would be the accumulation stage in a bullish market and we should expect the chart to be heading upwards, which is exactly what happens.

Now we have the opposite scenario. If price is falling and the volume is rising alongside with it, we should be expecting it to crash even more as this is signaling distribution in a bearish market, which again is exactly what happens.