POLL ANSWER REVEAL

✅ Correct Answer: A - Buyers are showing the same strength as before

The poll's scenario compared two reactions from a demand zone.

The first reaction was strong, while the later reaction was weaker.

However, since you've changed the poll answer to A, today's reveal should state:

🟢 A - Buyers are showing the same strength as before

When analysing a chart, we shouldn't rely on just one visual clue. We compare the price reaction with other information available on the chart.

And that brings us to today's topic.

TODAY'S LESSON - VOLUME 📊

We've spent a lot of time looking at price.

But there's another important piece of information traders often look at:

Volume

In simple words, volume tells us how much trading activity took place during a particular period.

Think of it like a crowd.

Imagine two situations:

Situation 1:

Price moves upward, but only a small number of participants are involved.

Situation 2:

Price moves upward while a much larger amount of trading activity is happening.

The price may look similar on the surface, but the amount of participation is different.

🟢 PRICE RISE + HIGHER VOLUME

If price moves strongly upward while volume is also relatively high, it can indicate greater participation during that move.

That can make the move more interesting to analyse.

But don't jump to:

“High volume = BUY!” ❌

Volume doesn't tell us whether the trade will succeed.

It simply gives us additional information about participation.

🔴 PRICE FALL + HIGHER VOLUME

The same idea applies when price falls.

If price drops sharply while trading activity is high, it tells us that there was significant participation during that downward move.

Again:

High volume ≠ guaranteed continuation.

We still need to look at the price structure and context.

WHAT ABOUT LOW VOLUME?

Suppose price suddenly moves upward, but the move happens with relatively little trading activity.

That doesn't automatically mean the move is fake.

But it may give us a reason to look more carefully at the context rather than assuming the move is extremely strong.

This is why traders often combine:

Price + Volume + Structure

instead of relying on volume alone

TODAY'S GOLDEN RULE

Volume tells us about participation, not the direction of the future.

And that's an important distinction.

A chart doesn't say:

“Buy here.”

It gives us clues.

Our job is to understand what those clues are telling us.

Study today's chart carefully.

Compare the different price movements and look at the volume underneath them.

Ask yourself:

Which price move had greater participation?

Did price and volume increase together?

Does high volume automatically mean price must continue in the same direction?

Don't just look at the tallest volume bar.

Look at it together with what price was doing at that moment.

TODAY'S CHART CHALLENGE

Imagine a stock suddenly breaks above a resistance level.

The breakout candle is large and bullish, and the volume during that candle is much higher than the recent average.