Low Volume Pullback Strategy: Reddit Insight Aligns with Technical Analysis Principles

A r/Daytrading trader shared a volume-based strategy: low volume pullbacks following high-volume bullish moves signal weak sellers, offering favorable continuation entries—cutting their bad trades. Comments noted the technique is standard (recommending Anna Couling’s book), with some criticizing it as obvious. The OP plans to integrate deeper order flow tools like DOM and footprint charts.

Low volume pullbacks are valid per Wyckoff accumulation patterns [2], confirming trend strength via volume [1]. A 2025 study found properly identified trends continue ~68% of the time. Volume analysis principles (high volume validates trends, low volume signals weak reversals) are foundational [3], with key indicators like On-Balance Volume (OBV) enhancing accuracy [6]. The strategy improves risk/reward ratios but needs combination with other indicators [1].

The trader’s insight is a core volume analysis technique supported by established methods (Wyckoff) and research. While some commenters deemed it basic, its effectiveness lies in practical application—especially when paired with order flow tools as recommended.

• Risks
  : Overreliance without additional confirmations (e.g., price action) leads to false signals.
• Opportunities
  : Integrating the strategy with order flow tools or OBV can boost entry/exit accuracy.