VOLUME ANALYSIS THREAD🧵🧵 :-

Volume represents the number of shares exchanged hands of a specific stock for a specific time period.
say the Daily chart and the volume indicates 10 lakh shares volumes, it means in total there were 10lakh shares trades in that day .
VOLUME is a very important tool used by any kind of analyst, as it shows the interest of the traders in that specific stock at a specific time, its a very imp. tool to know the mood of the traders for identifying the trend its trying to match with the force.
Generally, the higher the volumes better it is for the traders or analysts to help their decision making their buy or sell decision.

I personally give equal weight to the volume indicator while I decide to Enter or Exit the trade or my holding.
To be a valid volume indication it is to be observed.

1) volume rising Price rising = bullish
2) Volume rising Price stable = avoid
3)Volume stable Price rising = Fake rally
4) Volume rising Price falling = Bearish

One must remember these golden rules.
Alone Volume is not the only indication to be considered while taking any action,
VOLUME+PRICEACTION+FUNDAMNRTALS + OTHER INDICATORS + EXPERIENCE.

One much use volume with a combination that will help to take the best decision.
AVERAGE VOLUME VS HIGH VOLUME

in the chart, we can clearly see that the stock remained in the average move as the volumes were in sync with average volume, once the volume increased the stock moved like a rocket.

Higher volumes = better movement
LOW VOLUME LOW MOVEMENT
The chart shows when the stock witness high volumes the stock shows rising movement, and Low volumes the stock is sideways.

This means that where were there are low volumes there is no movement, so keep an eye on volumes .
AVERAGE VOLUME BREAKOUT = AVOID

In the chart, one should notice, while breakout just checks the volume is under the average volume bracket, and after a few days the stock falls back.

If one had analyzed volumes, one should have not bought it.
VOLUME BREAKOUT = PERFECT SETUP

The chart shows, when the stock was on average the stock had no great movement, but at the Breakout, we got the volume combination, that's where the stock picket uptrend movement.

This perfect Volume Breakout
The above are the few of the Volume analyses you can do while you are trading.

I have tried to cover a few of the points, but yes you have full right to go and research on your own and go more in detail.

This is just the start point, plz go into deep learning.

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