Volume analysis basics: price and volume together

Price tells you direction; volume tells you force. The same green candle means very different things whether it's a high-volume push or a low-volume drift.

Basic price–volume behavior

• Rising price on rising volume: eager buyers, healthier advance;
• Rising price on falling volume: weak follow-through, watch for stalling;
• Falling price on heavy volume: real selling; light-volume pullback: usually a normal breather.

Why breakouts need volume

When price breaks a key resistance on clear volume, real money is endorsing the move — more credible. A volume-less breakout often becomes a false one that fades back.

Divergence and VWAP

Price making new highs while volume steadily shrinks is a classic price–volume divergence, hinting momentum is fading. Intraday traders also use VWAP (volume-weighted average price) as a bull/bear dividing line and fair-value reference.