Technical
Volume Analysis
Quick Definition
Examining trading volume (number of shares/coins traded) to confirm price movements and identify potential reversals.
In Plain English
Price can lie, but volume tells the truth. A stock rising on low volume is like applause from a small crowd—nice, but not convincing. Rising prices on heavy volume means institutions are buying.
Example
MSFT broke above resistance on 3x average volume—the strong participation confirmed the breakout was likely real.
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