Those who have been in the crypto world for a long time understand a principle: the Candlestick patterns are actually illusions; what truly reveals the clues is the Trading Volume. Prices fluctuate daily, but it is the Trading Volume that reflects the real flow of funds.

Newbies are still focused on the price fluctuations, while veterans have already seen through the trading volume chart. The gap is actually quite large.

Let's get straight to the point today: there are three trading volume phenomena that can easily be misunderstood, but they are precisely the logic that the main players fear you understanding.

**Increased trading volume decline does not usually equal a bottom-fishing opportunity**

When the price drops, the trading volume increases significantly, which actually indicates that the chips are fleeing wildly. The true appearance of the bottom is often that there is not much attention, trading is quiet, and the price falls to a level where no one dares to buy. The smaller the volume and the less the discussion, the closer it is to the real bottom.

**Consolidation with decreasing volume, this is a very challenging range for mentality**

Prices are locked and stagnant, with trading volume shrinking day by day, and many people can’t stand it and run away. At this time, it is often the main force quietly accumulating coins. Conversely, one should be cautious; if there is a significant increase in volume during a sideways trend, it is likely a trap to lure more people in to take over.

**The focus of a breakout on increased volume is on the follow-up, not the first candlestick**

A truly rising market will not just have one large volume spike without any follow-through. The initiation signal should be monitored for sustained trading volume afterwards. If there is just one large bullish candlestick followed by silence, it is basically just a false signal.

In a nutshell: Volume always leads price. If you only look at price, you are gambling and guessing. Only by understanding the changes in trading volume can you get a step ahead in understanding what the market wants to do.