1. Psychological behavior of investors:
The rising price prompts investors to chase the upside for fear of missing out.
This sometimes leads to losing trades due to impulsiveness.
2. Volume significance with price:
Rising volume with price shows the strength of buyers.
If the volume starts to decline even though the price continues to rise, this indicates weak momentum.
3. Danger signs:
Decreasing volume during an uptrend is an indication that buyers are losing control.
This could mean that the market is approaching a correction or a sudden decline.
4. Practical advice:
At the peak of high volume and price, you should consider exiting to secure profits.
Do not enter or stay in a trade unless you are sure that there is strong, sustainable momentum.
Conclusion:
Watch the movement of volume with the price carefully to avoid risks and protect your profits. Markets do not always reflect stability when rising, and beware of signals that predict reversals.