Don’t be dazzled by the candlestick charts; volume is the key to distinguishing true breakouts from false ones—over the years, my "Three Volume Tricks" have helped me avoid many pitfalls.



When I first started trading cryptocurrencies, I was the kind of rookie who only watched the red and green candles, buying the dips and chasing the rallies. The result was predictable: buy and it drops, sell and it soars. Only later did I realize that candlesticks are superficial; the real intention lies in the trading volume.

Applying this method has significantly improved my market judgment. Today, I’ll share three secret techniques.

**First Trick: Don’t Be Tempted by Large Volume During a Sharp Drop**

My margin call lessons came from here. Once, the price plummeted 20%, with trading volume soaring five times higher than the previous day. I thought I had found a golden opportunity, but I got caught right away. Later, I realized—big drops combined with huge volume are signals that the big players are offloading.

Remember this contrast:
- Drop + High Volume = Main players are fleeing
- Drop + Low Volume = It may seem like no one is selling, but they could be quietly accumulating

The first is a trap; the second could be the real bottom.

**Second Trick: Sideways Consolidation with Low Volume Is a Sign of a Big Move**

Last year, a coin traded sideways for an entire month. Interestingly, the daily trading volume shrank to one-third of its peak. The community was cursing the coin daily, calling it a "dead coin," but I saw it as a sign that the chips were quietly being absorbed.

I allocated a small amount of spot holdings. After three days, a large bullish candle with increased volume appeared, and the volume continued to grow, pushing the price up by 30%.

The logic behind this is: low-volume sideways movement indicates chips are shifting. Once retail investors are fully shaken out, it’s time for a rally.

**Third Trick: Watch for Follow-Through Volume on Breakouts**

Many people have been fooled by false breakouts. When a breakout occurs, a huge bullish candle often appears, making it look like the coin is about to take off. But nine out of ten times, it’s a "searchlight"—after hitting stop-losses, the price gets pushed back down.

What does a real breakout look like? The second candle after the breakout should also have increased volume, and the closing price should be higher than the first breakout candle. If the volume doesn’t sustain, it’s a false breakout—entering then just makes you the bag-holder for the big players.

**Look at it from a different angle**

Price is like fireworks—beautiful but easily misleading. Volume is the real gunpowder—it tells you when the big players ignite or extinguish the fire.

Focusing only on the spectacular fireworks, you’ll never know when it’s going to fizzle out. But understanding the patterns of trading volume allows you to see the flow of funds and grasp the true intentions of the market.

Markets are always there, but those who truly survive and profit are never passive followers. Their common trait is a deep understanding of volume and precise timing.

Have you already decided which angle to approach from?
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GasFeeCryingvip
· 21h ago
The tactic of sideways consolidation with reduced volume is indeed brilliant. I only realized this last year after being trapped by it. Now, looking at the trading volume is much more comfortable than analyzing candlesticks.
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StablecoinEnjoyervip
· 21h ago
The sideways consolidation pattern with reduced volume really works. Last year, I avoided several false breakouts thanks to this, but now I'm starting to doubt my own eyes haha.
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JustHereForMemesvip
· 22h ago
Well... there's nothing wrong with that, but I've been using this system for so long that I've seen through the combination of volume and price, and I can't make money anymore.
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