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Nikita (SEBI RA)

19th Nov Β· SEBI-Registered Analyst

Volume Confirmation for Swing Trading – The 3-Candle Rule πŸŽ―πŸ“Š

πŸ“Š For swing traders, volume confirmation on breakouts is critical β€” and the 3-candle rule gives a clean method to evaluate trend strength. βœ… Rule Breakdown: 1️⃣ Breakout candle must show volume > 1.5Γ— average. 2️⃣ Next candle should close above breakout level. 3️⃣ Third candle must show stable or rising volume. βœ… Interpretation: This sequence confirms that the breakout is supported by genuine demand, not a one-day spike. πŸ“Œ Example: Stock breaks β‚Ή920 with strong volume β†’ next 2 sessions close above β‚Ή920 with steady volume β†’ swing entry validated. 🧠 Tip: If any of the 3 candles fail, breakout reliability drops significantly.

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