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Excellent 👌 Let me explain in detail how to use candlesticks + trading volume together, so you can distinguish between a real breakout and a false breakout:
1️⃣ Candlestick
If the price reaches a strong resistance (like 0.22):
If a strong green candlestick appears (its body is long and closes above 0.22) → this is a positive sign.
If the price breaks 0.22 but the candlestick closes below it (long upper shadow + small body) → this is likely a false breakout.
2️⃣ Volume
You need to look below the chart:
A long green column at the same time of the breakout → it means buyers entered strongly.
If the breakout occurred but the column is small (weak trading volume) → there aren’t enough buyers to push the price, and this gives a possibility of the price returning below 0.22 quickly.
3️⃣ Combining the two
🔹 Real breakout:
Strong green candlestick + clear close above 0.22.
High trading volume (a green column longer than the previous columns).
🔹 False breakout:
The candlestick rises above 0.22 but then returns and closes below it.
Weak trading volume (the column is short).
4️⃣ Practical example
Imagine the price broke 0.22:
If you see the candlestick closed at 0.223 or 0.225 with a huge green column → this confirms a buy entry (signal of an upward movement).
If the price touched 0.223 and then closed at 0.219 with weak volume → it means the market doesn’t have the strength to rise (signal of a potential downward movement).
📌 As a general rule:
Price without strong trading volume = weak movement that is likely temporary.
Price + strong trading volume = confirmed new trend that is likely.
Excellent 👌 Let me explain in detail how to use candlesticks + trading volume together, so you can distinguish between a real breakout and a false breakout:
1️⃣ Candlestick
If the price reaches a strong resistance (like 0.22):
If a strong green candlestick appears (its body is long and closes above 0.22) → this is a positive sign.
If the price breaks 0.22 but the candlestick closes below it (long upper shadow + small body) → this is likely a false breakout.
2️⃣ Volume
You need to look below the chart:
A long green column at the same time of the breakout → it means buyers entered strongly.
If the breakout occurred but the column is small (weak trading volume) → there aren’t enough buyers to push the price, and this gives a possibility of the price returning below 0.22 quickly.
3️⃣ Combining the two
🔹 Real breakout:
Strong green candlestick + clear close above 0.22.
High trading volume (a green column longer than the previous columns).
🔹 False breakout:
The candlestick rises above 0.22 but then returns and closes below it.
Weak trading volume (the column is short).
4️⃣ Practical example
Imagine the price broke 0.22:
If you see the candlestick closed at 0.223 or 0.225 with a huge green column → this confirms a buy entry (signal of an upward movement).
If the price touched 0.223 and then closed at 0.219 with weak volume → it means the market doesn’t have the strength to rise (signal of a potential downward movement).
📌 As a general rule:
Price without strong trading volume = weak movement that is likely temporary.
Price + strong trading volume = confirmed new trend that is likely.
