🔍 What is Volume?
Volume refers to the number of shares traded in a single session, measuring the true strength of price action. While prices can be manipulated in the short term, volume is a more reliable indicator.
📐 4 Classic Volume Principles (Wyckoff)
- Price increase + Volume increase = healthy uptrend (bullish)
- Price increase + Volume decrease = weak uptrend (bull trap warning)
- Price decrease + Volume increase = healthy downtrend (bearish)
- Price decrease + Volume decrease = weak downtrend (potential reversal)
⚠️ Real Bull Trap Example
Case study: FLC in 2022: The stock price rose 25% in two weeks, but the volume was only 60% of the average. New buyers entered the market, only to see the price drop 50% two weeks later. This is an example of distribution, where large players sold to smaller investors.
🎯 Volume Profile vs Volume Bar
Volume Bar: a vertical bar below the chart, representing volume over time.
Volume Profile: a distribution of volume by price zone, indicating the Point of Control (POC) – the price with the highest volume – which corresponds to strong support and resistance levels.
📊 Example: HPG in 2024
- May 15: Breakout above 31,000 + volume 3.2x average → real breakout, followed by a 35% increase
- July 10: Price rose to 38,000, but volume was only 0.7x average → negative divergence, followed by a decline to 32,000
🚀 Volume on Vnstock
The price table includes a volume column, as well as a comparison to the 20-day average. The Stock Screener filter allows for stocks with volume > 1.5x average. The Volume Profile tab is available for the VN30 index.
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