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The Role of Volume in Gold Trading Strategies

Volume is a critical yet often overlooked element in gold trading. It reflects the number of contracts or shares traded during a specific time and can confirm the strength of a price move. High volume during price increases suggests strong buying interest, while high volume on declines indicates selling pressure. A well-rounded gold strategy incorporates volume analysis alongside price patterns to validate trade setups. For example, a breakout on low volume may signal a false move, whereas one on high volume suggests a higher probability of continuation. Insights from gold strategy help traders integrate volume analysis for better timing and decision-making.