GM, and welcome to a MAJOR milestone—Day 30! 🎉
We are officially one-third of the way through our 90-day journey. Look at how much you've already covered: safety, slang, psychology, and chart patterns. Give yourself a moment of credit. You're building something real.
Now, let's tackle a concept that separates casual chart-looking from real analysis. Yesterday, we learned to read the "story" of price with candlesticks. Today, we learn to measure the "crowd's enthusiasm" behind that story. That concept is Volume.
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Volume, Explained Simply
What it is:
Volume is just a number that shows how much of a cryptocurrency was bought and sold during a specific time period (like 1 hour or 1 day).
Why it matters:
Think of a price move as someone shouting a direction.
· If one person shouts "Go left!" → Maybe we listen, maybe we don't.
· If 1,000 people shout "GO LEFT!" → That's a strong, convincing trend.
Volume is the size and conviction of the crowd behind the move.
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The Golden Rule:
Volume Confirms Price Action
This is the core takeaway. Volume tells you if a price move is strong and legitimate or weak and suspicious.
Scenario 1: Price UP + Volume UP ✅
· What you see: A green candle (price rising) with a tall volume bar underneath.
· What it means: STRONG BUYING. Many people are convinced and putting real money behind the upward move. This trend has fuel and is more likely to continue.
· The Analogy: A rocket taking off with a full tank of fuel.
Scenario 2: Price DOWN + Volume UP ✅
· What you see: A red candle (price falling) with a tall volume bar underneath.
· What it means: STRONG SELLING. Many people are exiting or selling, creating strong downward pressure. The downtrend is powerful.
· The Analogy: A crowd rushing for the exits.
Scenario 3: Price UP + Volume DOWN 🚩
· What you see: A green candle moving up, but with a small volume bar.
· What it means: WEAK, UNCONVINCING MOVE. Not many people are buying in. This could be a fake-out or "pump" with no staying power. Be skeptical.
· The Analogy: A car rolling downhill in neutral—it's moving, but the engine isn't on.
Scenario 4: Price DOWN + Volume DOWN 🤷
· What you see: A red candle moving down, but with a small volume bar.
· What it means: LACK OF SELLING CONVICTION. The price is dripping down because no one wants to buy, not because everyone is desperately selling. It can indicate a drying-up sell-off.
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Your Action Step: How to See Volume
1. Go to a chart (like TradingView or your exchange).
2. Look below the main price chart. You'll see a series of vertical bars.
3. Match the color: Volume bars are often colored green or red to match the candle above them (green volume bar for a green candle, etc.).
Practice now: Look at Bitcoin's daily chart. Is the current candle green or red? Now look at the volume bar below it. Is it tall or short? What story is it telling you?
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Today’s Big Takeaway
You now have a powerful filter for every trade or trend you see. Never look at price alone. Always ask: "Is there volume to support this?"
High volume = real conviction. It's the market saying, "We believe in this move."
Low volume = weak consensus. It's the market whispering, "This might not last."
This one habit will help you avoid fake breakouts and spot the real trends early. It’s a cornerstone of confident analysis.
> > BOOKMARK THIS CONCEPT. << You will use it every single time you look at a chart.
