What Is a Volume Weighted Order Flow Signal?

Not all trading activity carries the same significance.

A small burst of buying volume may have little impact, while substantial buying activity near an important level may deserve closer attention.

Combining volume with price response can help identify meaningful participation.

For example:

- High volume with strong upward movement.

- High volume with little upward progress.

- Low volume during a breakout.

- Increasing volume during a trend continuation.

Volume becomes more useful when you compare it with price movement and market context.

Do you compare candle volume with the distance price travels?