For beginners:

What is volume in trading and how to use it to your advantage?

Trading volume is a key indicator that reflects activity and interest in a financial asset. It represents the number of trades made and is comparable to the noise at a party, where market "sharks", or large investors, can influence the price.

**Detect Manipulated Volume:**

Sharks can manipulate volume to create false expectations. If the volume increases with a significant price change, it indicates a market consensus. If the price change occurs with little volume, it may signal weakness or disagreement.

**Trade Based on Volume:**

Volume helps confirm price trends and patterns. It should be used in conjunction with other technical analysis tools. Accumulation and distribution zones, where volume is high but price remains stable, can indicate preparation for a significant price movement. Divergences between volume and price can signal a loss of momentum and possible changes in direction.

This summary provides an overview of how volume can influence trading decisions and how it can be manipulated by high-net-worth investors.