I've noticed that many beginners in trading often ignore one of the most useful analysis tools — trading volume. And it's a mistake because the volume indicator can tell you much more about the market than just the price on the candles.

Volume shows how actively participants are trading at a given moment. When you see the price rising and the volume increasing at the same time — that's a signal that the trend is really strong and likely to continue. But if the price is going up while trading activity is quieting down — you should be cautious. This could be a warning that the movement is losing strength.

Interestingly, the volume indicator helps identify where the actual support and resistance levels are on the chart. High volume near these levels indicates that they are truly significant for the market. These are not just numbers — they represent real battles between buyers and sellers.

It's especially useful to monitor divergence between price and volume. When the price keeps rising but volume decreases, it often precedes a reversal. The market is essentially saying: "Guys, I'm tired; something might change now." Sharp jumps in volume often coincide with news releases or significant trend changes.

On charts, the volume indicator is presented in various ways — classic histogram, volume profile, accumulation/distribution indicator, and others. Each has its features, but the main idea is the same — they all show market activity.

The most important thing I've learned over years of trading is that volume is not an independent tool. It should be used together with price analysis and other technical tools. Only a combination of different approaches provides a complete picture. Without this, even the most advanced volume indicator can be misleading. So always analyze the context and don't rely solely on one indicator.