13. Study Volume

[John Esther]

Volume shows how much activity is happening in a stock. A price move with strong volume is more reliable than one with weak volume.
Think of volume as confirmation. If price is rising and many people are participating, the move is stronger. But if price moves without volume, it may not last long.

 

[Chinyere]

Volume shows how much activity is happening in a stock. A price move with strong volume is more reliable than one with weak volume.
Think of volume as confirmation. If price is rising and many people are participating, the move is stronger. But if price moves without volume, it may not last long.

Volume is what separates a real move from a weak one.
Price can move for many reasons, but volume tells you how much conviction is behind that move:
Rising price + strong volume → buyers are committed
Rising price + low volume → weak move, possible reversal
Think of it like this:
Price shows direction, but volume shows strength.
Over time, you’ll notice:
Breakouts with volume tend to hold
Breakouts without volume often fail

When you see a price breakout, do you wait for volume confirmation, or do you enter early and hope the volume follows?