Volume Confirmation in Chart Patterns
A 1-minute lesson from the MarketPro academy, one of 22 in chart patterns.
Volume confirmation refers to the practice of checking trading volume alongside a chart pattern's price action to judge whether the move has genuine participation behind it, rather than relying on the pattern's shape alone. Most classic chart patterns have an associated volume expectation: for example, breakouts are traditionally viewed as more credible when accompanied by a noticeable increase in volume, since that suggests broader market participation rather than an isolated, thin move.
Volume confirmation refers to the practice of checking trading volume alongside a chart pattern's price action to judge whether the move has genuine participation behind it, rather than relying on the pattern's shape alone.
Most classic chart patterns have an associated volume expectation: for example, breakouts are traditionally viewed as more credible when accompanied by a noticeable increase in volume, since that suggests broader market participation rather than an isolated, thin move.
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Lesson 21 of 22 in Chart patterns
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