Academy
Reading charts and volume
Price without volume is a drawing. Volume without a pool behind it can be wash.
What you are actually seeing
A candle is trades that landed. On a thin pool, your own buy is the breakout.
A few things that repeat
- A vertical candle on tiny volume is not momentum. It is an empty book.
- Rising price with rising volume is interest. Rising price with dying volume is a stall.
- A huge wick through the high that closes back inside often means sellers were waiting there.
- Compare the volume to the liquidity. If volume is many times the pool, a lot of that volume may be the same coins going back and forth.
Timeframes
The one-minute chart is for execution. The five and fifteen are for whether the idea is still intact. If you cannot say which one you are using, you will take a scalp target on a swing and a swing stop on a scalp.