Day 4: Volume Analysis – The Truth Detector for Your Trades

Welcome to Day 4! Now that you spot patterns at key levels, let’s add volume – the ultimate confirmation tool to filter out fake moves.

📊 Today’s Power Skill:
Using volume to confirm whether breakouts will succeed or fail (saving you from costly mistakes).

Step 1: Why Volume is Your Trading Lie Detector

The Golden Rule:

"Price moves WITH volume = Strong signal. Price moves WITHOUT volume = Likely trap."

Real-World Example:
➡️ How I used volume to avoid a 15% loss in Bitcoin (Portfolio Backlink #1 – Case Study)

Step 2: Volume + Candlestick Patterns = High-Probability Trades

3-Step Confirmation System:

  1. Price at S/R level (Day 2)

  2. Reversal pattern forms (Day 3’s hammer/shooting star)

  3. Volume spikes on the pattern candle

📌 Action Task:

  1. Revisit your Day 3 charts

  2. Check volume on each pattern (My Volume Analysis Guide) (Portfolio Backlink #2 – Resource)

  3. Screenshot 1 example

Step 3: Spotting Fakeouts Like a Pro

The "Volume Divergence" Red Flag:

  • Bullish Fakeout: Price breaks resistance but volume is weak → Reversal likely

  • Bearish Fakeout: Price breaks support but volume fading → Trap for sellers

From My Trading Journal:
➡️ See my Apple trade where volume saved me (Portfolio Backlink #3 – Trade Example)

Homework for Day 5

Tomorrow: We’ll combine ALL skills to build your first trade plan!

Final Thought

"Volume doesn’t lie. The biggest traders leave footprints – follow them."

🔗 Deep Dives: