Predictive Edge 04 Trend Analysis

FOUNDRY · PREDICTIVE EDGE SERIES

The Art of Reading Volume

“Price tells you what happened. Volume tells you how much they cared.”

Why Volume Matters

Price moves on disagreement. Every transaction requires a buyer and a seller. Volume measures the intensity of that disagreement.

High volume + price move = Conviction

Low volume + price move = Suspicion

High volume + no price move = Battleground

Volume is the fuel of price action. Without it, moves are suspect. With it, trends have staying power.

Volume Analysis Techniques

Relative Volume

Don’t look at absolute numbers. Compare today’s volume to:

  • 20-day average
  • Same time yesterday
  • Prior sessions at this price level
  • 2x average volume at a key level = significant

    Volume on Breakouts

    The most important volume signal:

    Volume Climax

    When volume spikes 3-5x average at the end of a trend:

  • Buyers/sellers exhausted
  • Last gasp of the move
  • Often marks significant turning point
  • Learn With Titan

    Reading Volume Like a Professional

    The Volume Checklist

    Before entering, ask:

  • [ ] Is volume above or below average?
  • [ ] Is volume confirming the price move?
  • [ ] Are we at a volume node (POC, VAH, VAL)?
  • [ ] Is this a volume climax situation?
  • [ ] What does the volume profile say about this level?
  • Volume + Price Action = Edge

    Part of the Predictive Edge Series. Listen to what volume is saying, not just what price is showing.

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