Possibly, but it's important to remember these orders can be removed at any time. I prefer to first identify support/resistance on the chart. Very high volume usually occurs at inflection points, so high volume wicking through resistance is usually a good sign of a top.
This is interesting. Can you elaborate more on this? How to identify the support/resistance levels?
You'll want to identify price pivots, moving averages, trend lines, round psychological price levels ($100, $1000...), Fibonacci retracement levels, and so on.
See here:
Support and Resistance BasicsAnd here:
Identifying support and resistance levelsAnd how does high volume play a role here?
See here:
How to Use Volume to Improve Your TradingIn a rising or falling market, we can see exhaustion moves. These are generally sharp moves in price combined with a sharp increase in volume, which signal the potential end of a trend. Participants who waited and are afraid of missing more of the move pile in at market tops, exhausting the number of buyers. At a market bottom, falling prices eventually force out large numbers of traders, resulting in volatility and increased volume.
Imagine a market that's been in a strong uptrend for a while. You've identified a technical resistance area. The market spikes through that resistance area on very high relative volume and quickly declines back below resistance. This is a possible indication the uptrend is exhausted, and "everyone who wants to buy has already bought." The confluence between technical resistance and high volume is an indication to be wary of your exposure to longs and consider taking profit.
At present, I just look at the chart manually and look at the points where the price action went reverse sharply. I sometimes see the price reaching the same peak a couple of times and then there is a sharp drop in price. So, I call that a resistance level. I am not sure if that is the correct way of identifying?
Yes, that's definitely one form of technical resistance level.