Beginner 6 min read
Reading volume — the "second opinion"
Every breakout has a vote count. Without volume, you're guessing. With it, you have evidence.
Price tells you what happened; volume tells you how much conviction was behind it. A breakout on 3x average volume is a statement. The same breakout on below-average volume is a suggestion — and suggestions get faded.
The pattern worth memorizing: volume should contract during consolidation and expand on the resolution (breakout or breakdown). If volume is already elevated during the consolidation, the move has likely already started without you.