High volume reflects divergence; beyond that, it carries no additional meaning.

"放量" refers to a situation where both the number of sellers and the number of buyers are high. If everyone is calling each other fools, what does that indicate? It indicates divergence of opinion.

So, what does heavy volume after a prolonged decline signify? It means the bears' selling pressure has been temporarily exhausted.

When bearish momentum is depleted and the bears can't reorganize their forces in the short term, what kind of level is this? It's a support level. Breaking below this level will be very difficult, but moving higher is relatively easier. So prices start climbing, climbing, climbing—until even the aunties selling vegetables at the market are discussing this topic and wanting to withdraw their savings to grab a quick profit. When those market aunties have all entered, and then heavy volume appears again, what does that mean? It means the bulls' buying momentum has been exhausted. When the aunties at the wet market are there to take the bait, who could possibly be weaker than them?

After many instances of price breaking out to new highs, heavy volume appears once again.

What do you call this level? A resistance level.

The principle is the same: heavy volume still only represents divergence, because for every buyer there must be a seller. When so many people are buying and selling, that signals a wide divergence of opinion.

If there were no divergence, it would mean either no one wants to sell, or no one wants to buy.

No sellers means everyone believes the price will go up; no buyers means everyone believes it will keep falling.