School

Module 3 — Price behaviour

How activity fades

5 minute read

In plain English

Unusual volume is temporary. Almost every burst of activity decays back towards normal.

Why it matters

Knowing this stops you holding a quiet stock waiting for a move that has already happened.

Example

A stock at 6x relative volume at 10am is often back to 1.2x by 2pm, with price drifting.

Try this

Watch one pulse from Active through to Faded and note what changed first.

Common mistake

Waiting for a second leg that never comes.

What this does not mean

Fading activity does not predict a fall.

Educational content only. Not financial advice.