$LIGHT The analysis of the horse behind is actually not much cared about by people in front of the horse.

Let’s talk about technical analysis. In the book on volume and price analysis, there has always been a viewpoint that says,

when volume increases and price increases, it is normal to look bullish; when volume decreases and price increases, it indicates a bearish signal (the original text states that a decrease in trading volume while price still rises is an abnormal signal).

To make it easier for everyone to understand, I have specially drawn arrows to point it out.

The so-called volume refers to trading volume, which should be compared closely. For example, if the price rises in the last hour and the volume also increased compared to the previous hour, that is normal. However, once a decrease in volume occurs, that belongs to an abnormal signal.

Looking at the 4-hour candlestick chart, when a doji appears in 4 hours, its trading volume compared to the previous 4 hours is decreased.

In this book on volume and price analysis, the author has described this volume,

He said that in an auction, the more people there are, the higher the price will be; conversely, if there are very few people, the price will naturally not be higher. When we look at trading volume, the larger the volume, the higher the price, which is normal. If the trading volume is very low, but the price still makes a new high, that is an abnormal behavior. It’s like in an auction where there are very few people, yet the price still reaches astronomical levels. This is abnormal behavior and could indicate manipulation.