The Volume Trap Nobody Sees
Most traders: "Price up = buy"
Smart traders: "Check volume first"
Trick:
- Price up 5% BUT volume DOWN = trap (fake move)
- Price up 2% BUT volume UP 200% = real move (algo filling)
Real move = small % on BIG volume
Fake move = big % on small volume
Watch volume histogram. It doesn't lie.
#trading #psychology
Most traders: "Price up = buy"
Smart traders: "Check volume first"
Trick:
- Price up 5% BUT volume DOWN = trap (fake move)
- Price up 2% BUT volume UP 200% = real move (algo filling)
Real move = small % on BIG volume
Fake move = big % on small volume
Watch volume histogram. It doesn't lie.
#trading #psychology