10 Volume Trading Techniques - 1: Volume shows greed and fear

Volume can show you the level of greed and fear of any asset

If the volume is high on a bullish day (on the D1 chart), the market is greedy. The trader is strongly buying the asset and absorbing the entire selling volume


If the volume is high on a falling day, the market is frightened. They are selling as much as they can to flee the market.

In other words, if the volume is in agreement with the price action (up when the price rises sharply and increases when the price falls sharply), the market is in a strong trend.

10 Volume Trading Techniques - 2: Price and volume must be in agreement

The best way to understand volume is to see if the price and volume are in agreement or not. If the volume is high, similar to the strong waves, then we know that one side is dominating the market (buyer or seller).

When high volume corresponds to small price movements one should be suspicious. Why? Because the volume has to agree with the price to be normal. If you disagree, that is a warning sign. Maybe someone is selling when the price is going up or buying when the price is falling.

10 Trading Techniques for Volume - 3: Volume and Low Cap Stocks / Coins

Low-cap stocks & coins often have low volume, but sometimes there are a few columns of volume spike, that is when a big hand buys in / sells the stock, but when they are done with the position, the volume will low back.


Stocks/coins with this type of volume should be avoided, with very low liquidity and difficulty to trade.

10 trading techniques with Volume - 4: Volume cannon

If a stock suddenly has columns of enormous cannon volume, we know that a big hand, a shark, or some hedge fund is buying this stock frantically without looking at the price. In that case, the share price can be pushed up very quickly.


Cannon volume will usually be 5-20 times larger than normal volume, when you see 1-2 columns like this you can immediately buy and eat waves and then exit quickly.

10 Volume Trading Techniques - 5: Volume cannon prolongs

The cannon volume appears but pulls out for a long time. This is a big problem.

Usually, it is a sign that the stock is at a distribution peak and cannot move up anymore. At some point, it will collapse. Bitcoin is a very clear example.

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