Volume is the most important indicator, but it is the most neglected one. Most new traders neglect this indicator. I also neglected her for 3 years. I didn’t know about its importance. Now let me share this with you guys. I know most will ignore it, but some will take it seriously and implement it in their trading. This post is for them.
What is a volume indicator, and why is it important?
I'm not going to write a thesis or any long story on this. You will find long stories and theses on the internet. (The actual matter is that I'm not a good writer, lol🤭)
I'm going to tell you in short and in a way you can understand easily.
Let's say the price is a bike and the volume is its patrol. If you have enough patrol, your bike will run smoothly. That's to say, with enough volume, the price increases smoothly or without a small pullback.
If you have some traffic, your bike will not run smoothly. Sometimes it will stop, and sometimes it will run. That's mean with small volume, the price will increase, decrease, increase, and decrease. That's a small pullback.
If you have almost no patrol, your bike will not run. You can push it with your hands for some distance, but ultimately you will be tired and will stop pushing. That's to say, without volume, the price will go for a major correction. If not, if the price is pushed without volume, it will not go for a long time. It will go for a major correction very soon.
