2026-01-16 18:05:14

Volume analysis is key to trading. A sudden increase in volume often signals the start of a new trend and is worth paying close attention to. When the price rises and volume increases simultaneously, it confirms the strength of the upward move; otherwise, it may be a fleeting rally. The most easily overlooked is the shrinking volume within a trend — which precisely indicates that the momentum of both bulls and bears is waning, likely a prelude to a reversal. Mastering these three core signals can help you more accurately judge the authenticity and strength of the market. Whether trading spot or futures, volume analysis is an essential technical skill.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes

Reward
14
5
Repost
Share

Comment

0/400

0xLostKey

· 14h ago

The shrinking volume is really an overlooked signal; many people ignore this and end up getting trapped.

View OriginalReply0

SneakyFlashloan

· 14h ago

The section about shrinking volume was said very harshly, and it's indeed easy to overlook, but the prelude to a reversal is right there. --- I've stepped into the trap of price-volume divergence before; now I find volume more useful than price. --- In contracts, when volume amplifies, traders dare to go all-in, but the result is being hammered down—a bloody lesson. --- It seems most people only look at candlestick charts and completely ignore trading volume, no wonder there are so many retail investors. --- Talking about volume is easy, but actually operating requires a sense of feel—it's not that scientific, right? --- Spot trading is okay, but for contracts, you really need to keep an eye on volume; otherwise, it's easy to get caught. --- Suddenly increasing volume and chasing? That's asking for death; you still need to wait for subsequent confirmation. --- I've repeatedly made mistakes in volume analysis; maybe it's not suitable for someone with my temperament.

View OriginalReply0

MetaverseVagabond

· 14h ago

I pay attention to volume expansion, but making real money depends on what the big players are thinking. --- Price rises while volume falls, I usually just sell out. This kind of stock is the most deceptive. --- That's right, but 99% of people in the market can't understand volume, and they are still chasing the rise. --- The shrinking phase is indeed dangerous. I've been burned before, so now I'm more cautious. --- Volume is easy to talk about, but actually using it requires experience. --- Futures trading should pay more attention to volume. Sometimes a surge in volume can determine life or death. --- It all sounds theoretical. In actual operation, it's hard to tell whether it's a trap or a genuine breakout. --- Yes, I've been cut several times by fleeting surges. Now I must wait for volume confirmation. --- That's why experienced traders don't look at K-line charts but focus solely on trading volume. It truly is a skill.

View OriginalReply0

FUDwatcher