←Stage 25 · Premium
Technical Analysis

Volume Analysis

Volume is the effort behind every move. Read participation against the average, confirm or reject what price claims, and learn the one edge this stage owns — telling a real breakout from a low-volume fake.

Stage 25 of the TradeWize technical analysis track: read volume against its own average and tell a real breakout from a low-volume fake.

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StartLesson 1 · Why Volume Matters
What you’ll leave with10 lessons · 9-line playbook
  • Volume is the effort behind a move. Judge each bar against the chart's own average line, and expect the effort to match the result.
  • A healthy trend has heavy volume on its pushes and light volume on its pullbacks. A new high on fading volume is a warning.
  • A spike is a bar 2-3 times the average. At a breakout it starts a move. After a long run, it often ends one.
  • OBV adds volume on up closes and takes it away on down closes. A new high that OBV doesn't match is a warning.
  • A/D weights each bar's volume by where it closed in its range. It can climb while price is flat, which shows quiet buying.
  • CMF sums 20 days of money flow around zero. Take longs only above zero, and skip breakouts it doesn't back.
  • VWAP is the average price paid. Trade with the side price is on, and only a close across it counts.
  • The POC is the most-traded price, and the value area holds 70% of the volume. Fade failed pushes past its edge.
  • A real breakout closes over the top on two to three times the average volume. Skip quiet breaks, and fade them if they fail.