No worries. You need to know how to read candle charts if you...

No worries. You need to know how to read candle charts if you don't already. Re volume; SP often increases or decreases by an amount commensurate with volume. Not always the case though. A basic rundown:

- Large volume and large SP movement. Either the buyers or the sellers were clearly stronger.

- Large volume and small SP movement, indicating a large number of shares bought and sold at similar prices. Neither buyers or sellers were stronger, or, one side was only marginally stronger.

- Small volume and large SP movement. This is important. This is what is known as 'frictionless' buying or selling. eg. a big bull candle/bar with small volume indicates not many willing sellers, and buyers are forced to bid higher substantially, and they are willing to do so. A very good sign in the right context.


Volume is often misleading as well. Often there are 'cross trades' or 'block trades' between brokers for all sorts of reasons and it will make the chart show big volume, but it does not indicate buying or selling strength like on-market buying and selling does.