From zero #05 · Read a chart
What does volume tell you?
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What you will learn
Read the volume bars and know whether high volume makes a breakout more reliable.
What the episode says
Last time: a level is not a wall. Under every chart, there are bars: the volume. People say a breakout needs volume. Is that true?
Each bar is how much was traded during that candle. Tall bar: many traders. Short bar: few. Here, price broke above the 20-day high on big volume. And here, on small volume.
Across 1,133 breakouts on 36 coins, we checked five days later. After big volume, price was higher 47% of the time. After small volume, 50%.
Volume shows how many people agreed, not who was right. Here, big volume did not make breakouts more reliable. Next: how far does price move in a normal day?
Watch first: 01. What does one candle really tell you? · 04. Do support and resistance hold?
Next episode: How far does price move in a normal day?
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Education about how markets and tests work. Not financial advice.