Volume Trading Trick Will BLOW Your Mind
Volume spikes confirm accumulation or distribution phases, indicating whether price will continue or reverse.
Traders can use this relationship to anticipate trend continuation or reversal and avoid false breakouts.
Section summaries
Introduction to Volume‑Price Relationship
watchThe speaker opens by stating that at the bottom of a market, when price spikes up, volume should rise, and that this pattern indicates accumulation; then notes that in the distribution stage, as price falls, volume should rise, establishing the core rule that volume moves with price direction.
- Volume should rise on upward price spikes
- Volume should rise on downward price moves in distribution
Establishes the foundational rule that the video builds on.
Bullish Market Volume Dynamics
optionalThe speaker explains that in a bullish market, volume rises when price rises and falls when price drops, illustrating the inverse relationship; this behavior confirms the uptrend and reinforces the earlier accumulation signal.
- Volume rises with price in bullish markets
- Volume falls when price drops in bullish markets
Provides context but not essential for the core trick.
Distribution and Bearish Market Dynamics
watchThe speaker describes the opposite scenario where price falls and volume rises signals distribution in a bearish market, and when price rallies volume falls, showing the inverse pattern; this illustrates how distribution is identified.
- Volume rises with price declines in bearish markets
- Volume falls when price rallies in bearish markets
Highlights the key reversal signal.
Real‑World Example and Summary
watchThe speaker walks through a concrete example where price rises and volume rises confirming accumulation, then flips to price falling with volume rising signaling distribution, concluding that the volume‑price relationship reliably indicates market phases and reinforcing the rule as a practical tool.
- Accumulation confirmed when price and volume rise together
- Distribution signaled when price falls but volume rises
Delivers the final takeaway and reinforces the rule.
Key points
- Volume confirms accumulation — When price spikes upward and volume rises, it signals accumulation in a bullish market.
- Volume confirms distribution — When price falls but volume rises, it indicates distribution in a bearish market.
- Inverse volume behavior — In a bullish market, volume falls when price drops; in a bearish market, volume falls when price rallies.
- Volume‑price divergence signals reversal — A rise in volume while price moves opposite to the prevailing trend signals a possible phase shift.
“spikes up, you should see the volume” — Host
“distribution stage, as the price falls,” — Host
AI-generated from the transcript. May contain errors.
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