Candlesticks show the outcome; volume shows what’s happening on the ground
A lot of people stare at candlestick charts looking for answers. I watch volume. Candlesticks are just the body; volume is the pulse. Whether the market is truly coming back to life or just faking it is hard to hide once the volume comes in.
Pretty candlesticks don’t mean much. Most rallies without volume are just a performance. No matter how beautiful the move looks, if there’s no money coming in to keep it going, it can easily turn into a bull trap—luring people in before slowly shutting the door behind them.
I’ve been burned by this too many times. I’d see a big bullish candle and get excited, thinking the rally was underway. I’d put on a position, then the price would go sideways and volume would dry up. Finally, a bearish candle would wipe out all that excitement and turn it into a loss. It took me a while to realize that real pros don’t rush to decide whether prices will rise or fall. First, they look to see whether anyone is putting real money in at that level.
When volume keeps shrinking at a low, it means nobody in the market wants to make a move. If volume suddenly picks up at a low, watch to see whether it continues. A sudden surge in volume at a high doesn’t necessarily mean the top is in, but be alert to whether money is flowing out while the price is being pushed up. What’s most unsettling is actually low volume at a high—the price is still holding up, but trading is getting thinner and thinner. It’s like a room suddenly going quiet: you have no idea what’s going to happen next.
The longer you trade, the more straightforward your judgment becomes: if the price is rising slowly and volume is steady, it’s worth watching a little longer; don’t rush in after a sharp spike if there’s no follow-through; a flash crash isn’t a gift—first see whether money comes back. Until there’s confirmation, don’t make up stories about what the market is doing.
People who can read what’s happening on the ground may not make the most money every time, but at least they won’t keep jumping in at the most dangerous moments.
Don’t trade crypto in the dark. Want to dodge pitfalls and build steady profits? Keep up with Xin-jie’s pace!
A lot of people stare at candlestick charts looking for answers. I watch volume. Candlesticks are just the body; volume is the pulse. Whether the market is truly coming back to life or just faking it is hard to hide once the volume comes in.
Pretty candlesticks don’t mean much. Most rallies without volume are just a performance. No matter how beautiful the move looks, if there’s no money coming in to keep it going, it can easily turn into a bull trap—luring people in before slowly shutting the door behind them.
I’ve been burned by this too many times. I’d see a big bullish candle and get excited, thinking the rally was underway. I’d put on a position, then the price would go sideways and volume would dry up. Finally, a bearish candle would wipe out all that excitement and turn it into a loss. It took me a while to realize that real pros don’t rush to decide whether prices will rise or fall. First, they look to see whether anyone is putting real money in at that level.
When volume keeps shrinking at a low, it means nobody in the market wants to make a move. If volume suddenly picks up at a low, watch to see whether it continues. A sudden surge in volume at a high doesn’t necessarily mean the top is in, but be alert to whether money is flowing out while the price is being pushed up. What’s most unsettling is actually low volume at a high—the price is still holding up, but trading is getting thinner and thinner. It’s like a room suddenly going quiet: you have no idea what’s going to happen next.
The longer you trade, the more straightforward your judgment becomes: if the price is rising slowly and volume is steady, it’s worth watching a little longer; don’t rush in after a sharp spike if there’s no follow-through; a flash crash isn’t a gift—first see whether money comes back. Until there’s confirmation, don’t make up stories about what the market is doing.
People who can read what’s happening on the ground may not make the most money every time, but at least they won’t keep jumping in at the most dangerous moments.
Don’t trade crypto in the dark. Want to dodge pitfalls and build steady profits? Keep up with Xin-jie’s pace!