Why rising volume often matters more than price alone
Most traders obsess over price. But price, on its own, is incomplete.
If you want to spot breakouts early, and avoid false ones, volume is often the missing piece.
Recently, a VIP trader shared how consistently using unusual volume spikes helped him identify and confirm breakouts with far higher confidence. The logic behind it is simple, but powerful.
Let’s break it down.
Why Volume Tells You What Price Can’t
When an asset moves higher on average or declining volume, the move is fragile. It suggests hesitation, uncertainty, or a lack of broad participation.
But when price pushes higher on sudden, unusually high volume, something different is happening.
It signals conviction.
Large numbers of traders are converging on the same idea at the same time. Capital is flowing in aggressively. That kind of collective behavior rarely ends instantly.
Markets move in herds, and herds leave footprints.
The Psychology Behind Volume Spikes
A sharp increase in volume means:
More traders are participatingBreakout levels are being acceptedLate traders are rushing in
Short positions may be getting squeezed
This creates positive feedback. Strength attracts more strength.
That’s why breakouts confirmed by strong volume often continue further than expected. If you can identify these moments early, you’re no longer guessing — you’re aligning with momentum.
What “Unusual Volume” Actually Means
Not all high volume is meaningful. Context matters.
A useful definition is relative volume, not absolute volume.
One effective approach is to look for assets where:
Trading volume increases 100% or more compared to the prior 10-day averagePrice is already trading at least 5% higher
This combination filters out noise and highlights situations where both participation and direction align. Check out the live market scan on altFINS Crypto Screener.
Source: altFINS
Finding These Setups Systematically
Manually scanning hundreds (or thousands) of assets for volume anomalies isn’t realistic.
That’s where structured market scans come in.
At altFINS, we track these conditions across 2,000+ crypto assets, using a pre-built scan that flags:
Significant volume expansionConfirmed upward price movement
The scan works across multiple timeframes: 15m, 1h, 4h, 12h, and daily, so it’s usable for both short-term traders and swing traders.
Just as importantly, these scans can be saved and paired with alerts, so you’re notified when conditions align instead of reacting late. Visit the screener and use
How Traders Actually Use This Signal
Experienced traders don’t treat volume spikes as buy signals by themselves.
Instead, they use them to:
Confirm breakouts from consolidationValidate trend continuationFilter out weak or low-liquidity movesFocus attention on assets with real participation
Think of unusual volume as a spotlight. It doesn’t tell you everything — but it tells you where to look.
Key Takeaways
Price moves backed by unusual volume carry more convictionVolume spikes often precede or confirm sustained breakoutsRelative volume (vs. recent averages) matters more than raw volumeSystematic scans outperform manual chart-hoppingAlerts help you act early, not emotionally
As Richard Fetyko, CEO of altFINS, often emphasizes: Markets reward preparation.
If you learn to follow participation, not just price, you start trading with the market instead of reacting to it.
And that shift alone can change your results.
About altFINS
Founded by Wall Street veteran Richard Fetyko, altFINS is a crypto analytics platform for active traders who value analytics over hype. altFINS scans 2,000+ coins, calculating 150 technical indicators on 5 time intervals and 50 on-chain metrics to deliver automated screener insights. Together with AI chart patterns and expert-vetted trade setups, altFINS provides insights needed to move from market noise to confident trading decisions.
Using Unusual Volume Spikes to Spot Breakouts was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.