Quick take, light version: Over $LAB 1 hours, trading volume was about $5.95 million, 9.3 times the previous average; during the same period, the price fell 8.54%.
A surge in volume only shows that people are more active—it doesn't tell us which side is right.
Seriously, volume needs to be read alongside the candlesticks: where the price is sitting and how long the wicks are usually tell you more than the trading volume itself.
Sizing your order based on the distance to your stop-loss is much more reliable than guessing your position size.
#LAB
A surge in volume only shows that people are more active—it doesn't tell us which side is right.
Seriously, volume needs to be read alongside the candlesticks: where the price is sitting and how long the wicks are usually tell you more than the trading volume itself.
Sizing your order based on the distance to your stop-loss is much more reliable than guessing your position size.
#LAB