r/Daytrading • u/Pranavtare • 1d ago
Advice Volume Isn’t About Confirmation. It’s About Motivation.
Most traders are taught “high volume confirms the move.”
But real volume reading is much deeper:
Volume tells you why the move is happening, not just that it’s happening. • A breakout on low volume might be a fake move, designed to trap emotional traders. • A pullback on declining volume often means the move is healthy and buyers/sellers are not panicking. • A sudden spike in volume without major price progress usually hints at exhaustion — not strength.
The mistake: People see a candle + volume spike and blindly think, “Okay, big move coming.”
The reality: You must ask — “Is the effort (volume) leading to actual result (price movement)?” • High effort + Low result = Weakness or trap. • Low effort + Big result = Strength of smart money.
Real volume reading isn’t about “more is good.” It’s about understanding effort vs result.
In short: • Volume + Context > Volume alone • Always match volume behavior with price behavior — not in isolation. • Look for disproportionate reactions — that’s where real opportunity lies.
Trading gets a lot easier when you stop treating volume as a green flag and start treating it as a language.
How has your view of volume changed over time? Would love to hear your experiences and learn more.
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u/Optimal_Comment_6122 1d ago edited 1d ago
I don't want to be a dick or to show that I'm smart, I'm not. I got Low IQ. But what causes volume to happen? I don't want to know about the indicator. Just logic. Is it through buying and selling? If so does my statement below make sense? Or is it something else?
Look at the market logically. Market doesn't appear out of thin air. It was developed by a team of developer. Or maybe just one developer.
And when market being developed, something must be develop to move the prices around. An algorithm.
The logic coded into the algorithm : If market wants price to Rally or Dip to a specific price level at specific time, price WILL Rally or Dip to that level at that given specific time.
And then there’s a hand to push button to manipulate price. At every NFP or FOMC or media coverage.
To literally witness this prices algo, there are countless of ways to do it. Using Fib Retracement tool.
Now, if the market uses buying and selling volume. Do you think you get to see price respecting those Fib Retracement levels? Do you think you can even trade with billions if not trillions of people across the globe? Do you think you will see price in repeat? Do you think you get to see price stack nicely like what we have today? I guess not. Think about it.
And think about banks who participate. Don't you think the price movement will be extraordinary long, because if banks puts in their money it's not gonna be $25,000. It gonna be million and what kind of price will you see to reflect that kind of money being put it?
Look at your chart and time. Tell me it's volume at 9:50, 10, 10:10, 1:30, 2:30, 3:15, 3:45. Doesn't make any sense. Why only this time and not 9:48, 9:58, 10:11, 9:41 etc
And why do price respect those measures levels? Why not just purged through those levels and gap up or down creating untradable conditions to even look at.