Volume
How much traded in each candle: the weight behind a move.
4 minLesson 10 of 102 questions at the end
Key ideas
- 1Volume bars sit under the candles and show how much of the coin traded in each one.
- 2A move on high volume had many traders behind it. A move on thin volume is easier to undo.
- 3Breakouts through a level on rising volume tend to mean more than ones on falling volume.
- 4The markets list shows each market’s 24-hour volume in USD, a quick read of how busy it is.
What it shows
Volume bars sit under the candles, one per candle, coloured like the candle above. Taller bars mean more of the coin changed hands.
Volume
Made-up candles. The biggest bars come with the biggest moves.
Made-up 1h candlesWorked out like Lance Trade’s chart
O 86,843H 87,700L 86,823C 87,501
Reading it
- A move on rising volume had many traders behind it.
- A move on thin volume is easier to undo.
- A level that breaks on heavy volume is more convincing than one that breaks on light volume.
- The markets list shows 24-hour volume in USD, so markets compare fairly.
What it can’t do
Common mistakes
- Ignoring volume when a level breaks.
- Comparing volume across markets in coins rather than dollars.
Check yourself
Question 1 of 2
BTC breaks above resistance on the lowest volume of the week. What does that suggest?
Keys 1 to 3 pick an answer, Enter checks it
Try it in Lance
Add Volume from Indicators to see bars under the candles, coloured like the candles above them.
Turn on volume