Comments for https://ctrader.com/products/1992

Here's how to Use as Confirmation

The indicator is not a standalone signal generator. Instead, traders use it to confirm setups from other strategies:

Breakout Confirmation
If price breaks above resistance or below support, check if the breakout candle has volume above its MA.
High volume confirms more participants are behind the move → breakout is more reliable.
Low volume breakout = higher chance of false breakout.

Trend Continuation vs. Exhaustion
In a strong trend, pullback candles often have lower volume compared to impulse candles.
If a pullback happens on low volume and the next move resumes with higher volume → confirms trend continuation.
If you see the trend push continuing but volume dropping each push → possible exhaustion, prepare for reversal.

Reversal Confirmation
Big reversal candles (pin bars, engulfing candles, fractals) are stronger if backed by a volume spike.
Example: bullish pin bar at support with high volume = stronger reversal signal than same pin bar on low volume.

False Signal Filter
If your main system gives a buy/sell, but volume is weak (below average), you might choose to pass on that trade.
Helps reduce overtrading and filter noise.