Recently, many beginners find the numbers for internal and external volume on trading software confusing.

In fact, these two indicators can help us quickly judge the market's buying and selling strength.

Simply put, the difference between internal and external volume lies in who is more eager to execute a trade.
When you want to sell a stock immediately and execute at the price the buyer has posted, this counts as internal volume, indicating that sellers are more active.
Conversely, if you want to buy immediately and are willing to execute at the price the seller has posted, this is external volume, indicating that buyers are more eager to enter the market.

Many people ask what it means when external volume is greater than internal volume.
In simple terms, when external volume exceeds internal volume, it indicates that the buying power in the market is stronger, and there are more people willing to chase prices to buy than those rushing to sell at a lower price.
This is usually seen as a bullish signal.
On the other hand, if internal volume is larger, it shows that sellers are more active and want to sell quickly, which may suggest downward pressure.

When you open the trading software, you'll see five levels of quotes.
The green on the left is the top five bid prices, and the red on the right is the top five ask prices.
These are order data showing the five most desired buy and sell prices in the market.
But note that orders may not necessarily be executed; they can be canceled at any time.

To judge what happens after external volume exceeds internal volume, you also need to look at the stock price itself.
If external volume is greater but the stock price doesn't rise and instead falls, you should be alert for potential manipulation by the main players.
They might deliberately place large sell orders to attract retail investors to buy actively, while secretly selling off.
Conversely, sometimes internal volume looks large, but the stock price is rising, which could mean the main players are accumulating shares and intentionally placing buy orders to lure retail investors into selling.

The concepts of support and resistance zones are also very important.
When the stock price drops to a certain level and can't go lower, it indicates many people are willing to buy at that price—this is a support zone.
If buying pressure can't break through a certain price level, that's a resistance zone.
Many short-term investors operate within these zones—buying at support and selling at resistance.

However, it's important to remember that relying solely on the internal and external volume ratio can be deceptive.
Main players can manipulate fake data by combining order placement, execution, and cancellation.
Therefore, it's best to also consider trading volume, technical analysis, and fundamental factors to avoid pitfalls.
No single indicator can guarantee success in financial investment; internal and external volume are just tools among many.
You should also consider company fundamentals and the overall economic environment to improve your chances of winning.