Volume as the lie detector
The synthesis: using participation to grade every breakout, reversal, and trend.
On its own, volume predicts little. Its real job is grading other signals — every structural event has a strong-volume version and a weak-volume version, and they resolve differently.
The grading table
| Event | With volume | Without volume |
|---|---|---|
| Breakout | participation confirms — acceptance likely | thin poke — sweep-back candidate |
| Reversal candle | real fight lost and won — actionable | hollow print — wait for follow-through |
| Trend leg | healthy, owners committed | coasting — check for divergence |
| Support test | absorption — buyers standing firm | nobody defending — level is hollow |
A complete read, in order
- Structure — state of the market and the levels that matter.
- Candles — the auction story at those levels: rejection, acceptance, trap.
- Volume — grade the story: did participation back it? RVOL, the candle's volume vs its neighbors, the profile shelf it happened on.
- Positioning — the regime: will dealer hedging dampen this move or chase it?
Four lenses, one decision
When all four agree, size with confidence; when they split, the trade is a pass — not a smaller yes. Drill the full read in the Arena until it runs in seconds. That layered read is the terminal's whole design: structure, candles, volume, and positioning on one screen.