Volume that fails a breakout
How we judge whether volume on a break candle is enough to trust the move — and when we wait for a retest instead.
A break through resistance on a candle that prints below the ten-bar average volume is, for our drills, a candidate for a retest wait — not an immediate entry. Traders often argue that “volume comes later.” Sometimes it does. In Practice Lab we still mark the first candle as unconfirmed and only upgrade the setup if a later bar expands while price holds outside the range.
A simple comparison we use
Compare the break candle’s volume to the median of the prior ten bars on the same timeframe you trade. If it sits below that median, write “thin” on the worksheet. If it sits above and the close finishes in the outer third of the candle in the break direction, write “volume present.” Neither mark is a trade by itself; it feeds the checklist.
False comfort from tick charts
Tick charts can make thin cash sessions look busy. When we review KOSPI names after lunch, we prefer a time-based chart for the volume rule so that holiday tapes do not disguise quiet participation. Futures desks may keep a separate rule for RTH versus overnight — name which session you are confirming before you mark.
Practice prompt
Pull five breakouts from last month. Mark volume present or thin without looking at the next day first. Then reveal the follow-through. The goal is not a perfect hit rate; it is noticing how often thin breaks reversed into the range within three bars.