Volume Analysis
Price says what moved; volume says who showed up. Together they separate conviction from noise.
Price StructureIntermediate 5 min read· Lesson 5 of 13 in Technical Analysis
Explanation
Volume is the fuel gauge of moves. Healthy uptrend: volume expands on up-legs, contracts on pullbacks. Distribution warning: heavy volume with no upward progress (churn at highs). Capitulation: panic volume spikes at lows that often mark exhaustion.
Confirmation rules
Breakouts NEED volume (2×+ average) to trust; breakouts on silence fail disproportionately. Divergence — price grinding to new highs on shrinking volume — says participation is thinning.
On this platform
OBV and CMF turn volume into indicators (see descriptions on hover); VOLUME_SPIKE and the confluence scanner let you demand volume confirmation on any signal.