One of the most basic and reliable ways to analyze volume is to focus on extremely high and low volumes. This section discusses a few approaches to doing so.
High volume represents that big players are participating. The key is to find out what they are up to. Are they covering their short positions? Or are they selling rapidly to push the market further down?
Low volume is a sign that the market is reluctant to participate. Why? Are they missing something big that is brewing at the moment? Or are they waiting for a critical break?
To read volume effectively, ground your perspective with extremes.