I've noticed that many traders underestimate the role of volume in technical analysis. In reality, the volume indicator is not just an additional tool; it is one of the most reliable ways to understand what is truly happening in the market.

The main idea is simple: when the price moves in a certain direction but the volume increases, it signals that the trend has real strength. I usually pay attention to these moments. If, however, the price continues to rise while the volume decreases or stays flat, that's a red flag — the trend may be artificial and could reverse soon.

What else is interesting when working with volume? When there is a surge in trading near resistance or support levels, it often indicates that these levels are genuinely important to the market. High volume there confirms that many participants are paying attention to these points.

Another point that is often overlooked: a sharp jump in volume can warn of a trend change earlier than the price shows. This often happens when new information enters the market or when large players start to change their positions.

Divergence between price and volume is something really worth monitoring. If the price makes new highs but volume decreases, it often precedes a reversal. I’ve seen this many times on charts.

The visualization of the volume indicator can vary: histograms, volume profile, accumulation/distribution indicators. Each method has its advantages, and the choice depends on how you trade.

But the most important thing I’ve realized over the years is that volume always needs to be viewed in context. It’s not a universal signal; it’s confirmation. Use it together with price analysis and other tools, and you will get a much more complete picture of the market.