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.