WHAT IS VOLUME AND WHY DOES IT MATTER IN TRADING?

There’s a saying in trading: "Price lies. Volume doesn’t."

What is volume?

The number of contracts or assets that were traded in a given period of time.

Why does it matter?

Because it confirms whether a price move is real or a trap.

Example:

$BTC rises 3% with very low volume → the move lacks conviction and can be reversed easily.
$BTC rises 3% with volume 3 times the average → there is real institutional participation; the move has strength.

The same applies to drops.

A support break with high volume → strong bearish signal.
A support break with low volume → possible bearish trap; the price may recover.

In all my signals, I analyze relative volume before publishing. If volume doesn’t confirm, there’s no signal. $BTC $ETH $SOL

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