🚀 Bull Run vs. Bull Trap: Essential Trend Verification Indicators 📈
In trading, price tells a story, but volume reveals the truth. Understanding this distinction is crucial to navigate the market effectively.
To avoid falling victim to "Bull Traps" and "Pump & Dump" schemes, it's vital to validate every price move. Here's the first essential layer for accurate trend verification:
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**1. Volume: The Market's Fuel ⛽️**
Volume represents the true energy behind any price action. A price trend lacking significant volume is like a car running on empty – it won't sustain its momentum for long.
* **✅ Real Trend Confirmation:**
* **Price Up + Rising Volume:** This combination is a strong indicator.
* **Indicator:** Volume consistently stays above its 20-period Moving Average.
* **Meaning:** Signals high conviction from both retail and institutional participants, confirming a genuine trend.
