Volume is the third leg of our review method after levels and momentum. At a graded support line, we ask whether the retest candle shows participation — relative volume above the prior five bars on your execution timeframe — or whether price drifts through on thin activity.
Spike at rejection vs spike at breakdown
A volume spike on a hammer candle at support suggests active defence. The same spike on a close below support often indicates acceptance rather than rejection. Direction of the close relative to the level matters more than the colour of the volume bar.
Headline days
Central bank announcements and earnings prints inflate volume everywhere. On those sessions we compare retest volume to the opening hour average, not to quiet days earlier in the week. Otherwise every level looks "confirmed" by noise.
FX caveat
Spot FX volume from retail feeds is tick-derived, not centralised exchange volume. We use range expansion and tick count proxies instead of equity-style volume bars. The question remains the same: did participation increase at the level?