Market volume plays a crucial role in confirming or contradicting price action, offering valuable insights into the strength or weakness of market trends.
High volume accompanying a price move signifies strong conviction and participation from market participants, bolstering the likelihood of the trend continuing. For example, a sharp price increase on heavy volume suggests strong buying pressure, increasing the probability of further gains. Conversely, a large decline in price with high volume indicates significant selling pressure, raising the possibility of continued downward movement.
Low volume, on the other hand, can signal a lack of convict....
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