✨Volume and Price Analysis✨
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أسماء Asmaa
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How do we differentiate between real and fake market price movements? 📊
To analyze price correctly, you should always correlate trading volume with the candlestick:
Validated Movement: When the candlestick is wide and accompanied by high trading volume; here, price and quantity are in agreement, and the movement is strong.
Anomalous Movement: When the candlestick is wide but trading volume is low; this indicates the absence of 'market makers' and the potential for price reversal soon.
The Golden Rule💡: Price movement tells us where to go, but volume tells us how credible that direction is.
To analyze price correctly, you should always correlate trading volume with the candlestick:
Validated Movement: When the candlestick is wide and accompanied by high trading volume; here, price and quantity are in agreement, and the movement is strong.
Anomalous Movement: When the candlestick is wide but trading volume is low; this indicates the absence of 'market makers' and the potential for price reversal soon.
The Golden Rule💡: Price movement tells us where to go, but volume tells us how credible that direction is.
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