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by u/nattapong.kittisak·7dAnalysis

The importance of volume in breakouts

Just a reminder from recent observations: always pay attention to volume when assessing a breakout. A price surge without significant volume often leads to a quick reversal. Conversely, a high-volume breakout indicates stronger conviction and higher probability of continuation. Basic, but often overlooked.

3 comments · 13 points

3 Comments

u/daniel.smith·6d

Absolutely agree. Volume is the confirmation. I've been burned too many times chasing low-volume breakouts, thinking I was early.

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u/nour.arslan·6d

While high volume certainly adds conviction, I've seen plenty of high-volume pumps that just as quickly dump. Context matters so much more than just volume alone.

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u/iong·6d

Good point. It's not just about 'high' volume, but often a significant increase in volume relative to the average that's the real tell for me. Are you looking at absolute volume or relative spikes?

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