Recently, I found that many beginners overlook a key aspect when analyzing the market—the volume (Vol) indicator. In fact, trading volume (Vol) is an indicator that measures how many tokens are traded within a certain period of time (usually 24 hours). It seems simple, but it can tell you much more than you think.

My personal experience is that high trading volume usually indicates high market participation, with everyone actively trading. Conversely, when trading volume is low, price fluctuations are often easily manipulated, so you need to be especially cautious. Simply put, a high Vol indicator signifies strong buying and selling demand, which usually means the trend is more stable; but if trading volume is very low, it might mean the market isn't attracting attention, and prices can move erratically.

The most practical way to analyze the Vol indicator is to combine it with trend analysis. For example, when the price is rising and trading volume is also increasing, it indicates that this upward move has genuine market support, not a false rally. Conversely, if the price is rising but trading volume is shrinking, you should be alert—it might mean the rally is losing momentum.

However, relying solely on the Vol indicator can be one-sided. I usually combine it with other tools. For example, together with RSI (Relative Strength Index), when trading volume increases and RSI values are high, it indicates the market is in a strong state, whether it's rising or falling, with momentum. If you add MACD signals, when trading volume increases and the MACD line crosses the signal line, it can confirm that this trend has real energy.

The most useful application in practice is to confirm the authenticity of the trend. When bullish, if high trading volume supports it, you can have more confidence to follow the trend. Conversely, if the price starts to pull back but trading volume is very small, it suggests this is just a minor correction, and the previous trend may resume soon. Using the Vol indicator in this way can help you avoid many false breakouts.

Overall, the Vol indicator is a fundamental tool I check at every market open. It provides an intuitive reflection of market activity and trend strength. When combined with RSI, MACD, and other indicators, you can generally gain a clearer understanding of market movements.