Trader Tips: Why I Use Volume Candlesticks

Switching from regular candlesticks to volume candlesticks is one of the most impactful changes I’ve made in my trading strategy. Regular candlesticks show price movement, but they leave out a crucial detail—how much volume is driving that move. Volume candlesticks, on the other hand, reveal the strength behind each price change.

With volume candlesticks, you can spot where real money is flowing and differentiate meaningful moves from empty noise.

Here are five quick reasons volume candlesticks are a game-changer:

1. Strength of Moves: They show how much volume supports a price change, not just the direction.
2. Market Conviction: Bigger candlesticks mean stronger participation, helping you gauge trader sentiment.
3. Reversal Indicators: Spot key reversals backed by volume that traditional candlesticks might miss.
4. Avoid False Breakouts and Fakeouts: Identify whether a breakout has real momentum or is just a head fake.
5. Enhanced Risk Management: Use volume data to confirm trends before committing to trades.

Watch the video below for a full breakdown of how and why I’ve adopted volume candlesticks full-time: