Here's what you need to know

Candlesticks tell you the story of price action:

The body shows opening and closing prices

  • Lower wick = lowest price reached

  • Green = price went up

  • Red = price went down

But here's what most people miss:

Volume bars are the secret sauce that validates price moves.

Think of it this way:

Price is like a politician making promises.

Volume is like the number of voters supporting those promises.

The bigger the volume = the more conviction behind the move.

Key patterns to watch:

  1. High volume + big green candle = Strong buying pressure, bullish

  2. High volume + big red candle = Strong selling pressure, bearish

  3. Low volume + price movement = Weak move, likely to reverse

  4. Volume increasing with trend = Trend likely to continue

  5. Volume decreasing with trend = Trend losing steam

Remember:

Price tells you what happened.

Volume tells you how meaningful it was.

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