Aug. 12 at 8:02 PM
$RIOT I asked AI about the old adage "volume before price" Here's the answer (right or wrong)...
Why the adage works
The idea is simple: volume = participation, and participation usually changes before price does. When big players start buying or selling, they leave footprints in volume long before the public sees a clear price trend.
The most reliable cases:
Breakouts with surging volume
A stock sitting in a tight range suddenly trades 2–5× its normal volume. Price usually follows with a breakout.
Trend exhaustion
A trend that continues on declining volume is losing conviction. Price often reverses shortly after.
Accumulation/distribution
Institutions accumulate quietly: higher volume on up days, lower volume on down days. Price follows later.
Support/resistance tests
Heavy volume at key levels often signals an impending move.
These patterns are why many traders say volume is the “fuel” for price.
