Volume on breakouts

Where volume earns its keep most is at breakouts. To level 3's question — "is this breakout genuine or false?" — volume adds strong evidence. The traditional reading: a breakout on high volume is the product of broad participation and reads as more trustworthy; a low-volume breakout is a move with no crowd behind it, and more prone to turning out false.

The check on the chart is simple: compare the volume bar under the breakout candle with the bars of the preceding periods. A clearly taller bar shows genuine interest in that breakout. An ordinary or short bar should keep your doubt alive even though price has crossed the zone.

Still, know the limit: high volume does not "certify" a breakout, it only places weight on the scale of evidence. High-volume breakouts can fail, and low-volume ones occasionally travel far. Volume alone decides nothing — read together, the close, the retest and the volume form a powerful trio.