I've noticed that many beginners in trading ignore one of the most important tools — trading volume. And indeed, the volume indicator can tell you much more about the market than just the price on the chart.

In general, volume shows how many assets were bought and sold over a certain period. When you look at a chart, the volume indicator is usually displayed at the bottom as bars. And this is not just a pretty picture — it’s a serious tool for understanding what is really happening in the market.

Here’s what I’ve observed over years of trading. If the price is rising and volume is increasing along with it — that’s a good sign. It means the movement is supported by real buyer interest, the trend looks healthy, and it may continue. But if the price is going up while volume is falling or stagnating — you should be more cautious. This often warns that the trend may reverse soon.

One of my favorite techniques is to look at the volume indicator near support and resistance levels. When the price approaches these levels and volume is rising at the same time, it often indicates that the level is truly strong. High volume at resistance shows serious selling pressure, while high volume at support suggests buyers are willing to defend that level.

Another interesting point is divergence. When the price continues to rise but the volume indicator shows decreasing volume, it can be a sign of weakness. Traders often use this as a warning of a possible reversal.

A sharp jump in volume should always be noticed. Usually, it means some new information has entered the market or an event has occurred that changed participants’ sentiment. The volume indicator becomes very informative at such moments.

On charts, volume can be visualized in different ways. The classic volume histogram is the most common, but there are more complex tools like volume profile or Accumulation/Distribution. Everyone chooses what is more convenient for them.

An important point: volume should not be viewed in isolation. It only works in the context of price movement and other factors. I always combine the volume indicator with other technical tools and keep an eye on news. Only then can you make more informed decisions in the market, rather than just guessing based on candles.