When volume really does reveal the truth behind the price action
https://youtu.be/aHAf6LAAgkE
When Volume Really Does Reveal the Truth Behind the Price Action
Price action can deceive traders. It looks strong or weak. But volume tells the real story. Volume price analysis (VPA) combines both. This uncovers true market intent. High volume on moves shows conviction. Low volume warns of traps.
Classic VPA Signals That Reveal Truth
High volume on up candles confirms buying pressure. Price rises with conviction. Low volume on rallies signals weakness. Sellers absorb buying. This often leads to reversals. Divergence appears when price makes new highs on falling volume. Distribution is underway.
An excellent trading session for US indices, commodities and stocks following the extreme moves of last week and at times such as this, volume price analysis becomes ever more powerful in helping to reveal the truth behind the price action. What was interesting here was the volume associated with the wide spread down candle which was the precursor to extreme volatility which followed and which is likely to continue for...