Volume reader
"Is a rise on volume good or bad?" is a common beginner question. Reading price and volume together tells you more than price alone. Pick "price up/down" and "volume rising/falling," and below you'll see how that combination is commonly read. But remember: this is probability, not law.
"Rising/falling" is relative to a recent average, not some absolute number. The same combination can mean completely different things at a low, at a high, or at a breakout, and you still have to check whether it is a fake breakout or driven by news. This tool only covers common readings; it does not predict price and is not a buy or sell suggestion. Further reading: how to read volume.
How to use this tool
When reading a chart, ask yourself two things first: is price up or down, and has volume grown or shrunk versus your own recent stretch. Pick those two above and you'll see how that price-volume combination is usually read. A commonly cited example: price rising while volume shrinks often means few are chasing and the momentum behind this move is weak, so it may not hold — not that it must fall, but that "the rise looks a bit hollow" is information worth noting. Conversely, price rising with volume growing too is usually seen as money willing to agree, with relatively solid momentum.
A more practical way to think of it: treat volume as corroboration of "how many people are behind the move." Price alone tells you only up or down; add volume and you can roughly tell "a crowd pushing" from "barely anyone moving."
When it is worth reading, and when not to make too much of it
Reading price with volume suits instruments with some real turnover and a book that isn't too thin, and it suits key levels (say, just after a break above or below a line) as corroboration. On the other hand, for thin, obscure coins with little turnover, or around holidays and major data releases, volume is easily distorted, and the value of price-volume reading drops — don't force it. It is also only for adding "one more layer of judgment," not for use as an entry or exit switch.
A common misread
Plenty of people memorise "a rise on volume must go up" and "a fall on shrinking volume is near the bottom" as iron rules — a classic backwards read. Price-volume leans toward being probabilistic corroboration, not a law: the very same rise on volume can mean the opposite at a low versus at a high — high-volume at a high can be someone distributing into the crowd. Treat it as a reference, read it with position, and don't expect one combination to decide for you. Nothing about the future is guaranteed.
To read on: is a rise on volume a real breakout or a bull trap, and how to spot a fake breakout.