Reading Price Action for Smarter Trades
While many traders focus perfectly on indicators, smart traders put full attention to volume and value action. These Two Elements Reveal the Real Behavior of the Market Participants – and give you a clue about entertainment the business or exit.
Volume spikes often occur before major features. If a stock breaks resistance to high volume, it is a strong sign that buyers are treading in. But if the same outbreak is at weak volume, it can be a fake.
On the other hand, Value Action gives you the real story behind each candlestick. Patterns such as fast -connected, pinch or fake brakes often appear just before the speed change. For example, a long week indicates a large high volume of support often a strong upside.
You can intensify the edge by mixing both. Look for convergence: reject support and increase in quantity at the same time. When entries are the most powerful.
Always zoom out and check the trend. A good layout in the wrong direction often leads to losses. Adjust your entries with a big picture.
In short, the value of action tells you what is happening, and the volume confirms who is behind it. Learn to read both, and your trade will be smarter and more profitable.