What If I Say Most Traders Use VOLUME In A Wrong Way?
Updated: Feb 12, 2022
It's astonishing to see many traders analyze volume in the wrong manner.
It is difficult to understand why many people fail to see what's happening in the chart w.r.t price and volume.
Most of us know the traditional definition of volume. If you don't know it, below is the conventional definition of volume.
As per the traditional definition, if the price increases with an increase in volume, then it is bullish. If the price is increasing without volume, then it is bearish (or not bullish).
Similarly, if the price is falling with an increase in volume, then it is bearish, and if the price is falling without volume, then it is bullish (or not bearish).
But it is not easy to agree to the above definition as the charts say something else!
Let us look at some charts.
In the above chart, the price has gone up with medium volume.