Volume Confirmation for Swing Trading β The 3-Candle Rule π―π
π For swing traders, volume confirmation on breakouts is critical β and the 3-candle rule gives a clean method to evaluate trend strength.
β
Rule Breakdown:
1οΈβ£ Breakout candle must show volume > 1.5Γ average.
2οΈβ£ Next candle should close above breakout level.
3οΈβ£ Third candle must show stable or rising volume.
β
Interpretation:
This sequence confirms that the breakout is supported by genuine demand, not a one-day spike.
π Example: Stock breaks βΉ920 with strong volume β next 2 sessions close above βΉ920 with steady volume β swing entry validated.
π§ Tip: If any of the 3 candles fail, breakout reliability drops significantly.
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