Hey, newbie traders—do you see the price break through resistance and jump straight in, only for it to sweep your stop loss in a flash? 🧑🏫 That’s a mistake I kept making when I was new to trading.
💡 Picture it this way: there’s a door locked tight (resistance). You need to use some force to open it (break through resistance), right? If a little kid (the price) gives it a gentle push and it swings wide open, watch out—the door might be old or already ajar. But if a whole team of wrestlers (volume) all pile in and shove hard, now that’s a real door-buster! In trading, that “force” is Volume. Price $HYPE is currently at $77.45, RSI is very weak at 36.9 👀, and it’s below MA7 at $77.491 and MA25 at $79.024. Looking at the chart, the strong rally at the end of October came with sky-high green volume—that was a genuine breakout. Right now, the price is hovering around $77.45. If it tries to push above $82.44 but volume stays as weak as it has been these past few days, there’s a good chance the “whales” are just “fishing for stops.”
✍️ So when you see the price approach resistance or appear to break through it, don’t rush into a trade. Take a look at the volume bars right away. Volume needs to surge before you can trust that it’s a “real breakout.”
💡 Picture it this way: there’s a door locked tight (resistance). You need to use some force to open it (break through resistance), right? If a little kid (the price) gives it a gentle push and it swings wide open, watch out—the door might be old or already ajar. But if a whole team of wrestlers (volume) all pile in and shove hard, now that’s a real door-buster! In trading, that “force” is Volume. Price $HYPE is currently at $77.45, RSI is very weak at 36.9 👀, and it’s below MA7 at $77.491 and MA25 at $79.024. Looking at the chart, the strong rally at the end of October came with sky-high green volume—that was a genuine breakout. Right now, the price is hovering around $77.45. If it tries to push above $82.44 but volume stays as weak as it has been these past few days, there’s a good chance the “whales” are just “fishing for stops.”
✍️ So when you see the price approach resistance or appear to break through it, don’t rush into a trade. Take a look at the volume bars right away. Volume needs to surge before you can trust that it’s a “real breakout.”
