đ Why does a sudden jump in volume matter more than the price move itself?
In the last 24âŻhours $NEAR surged +2.7âŻ% to $4.415 while its 24âŻh volume spiked to $81âŻM â a clear sign of strong buying interest. When price climbs **and** volume rises sharply, the move is backed by real market participation, reducing the risk of a shortâlived spike. Conversely, a price rise on thin volume often signals a fragile rally that can reverse quickly.
Traders use this âvolume confirmationâ to filter out false breakouts: look for a volume increase of at least 2â3Ă the average daily volume before entering a long position. In NEARâs case, the volume was more than double the typical $40â50âŻM range, confirming the bullish momentum.
Do you check volume before acting
In the last 24âŻhours $NEAR surged +2.7âŻ% to $4.415 while its 24âŻh volume spiked to $81âŻM â a clear sign of strong buying interest. When price climbs **and** volume rises sharply, the move is backed by real market participation, reducing the risk of a shortâlived spike. Conversely, a price rise on thin volume often signals a fragile rally that can reverse quickly.
Traders use this âvolume confirmationâ to filter out false breakouts: look for a volume increase of at least 2â3Ă the average daily volume before entering a long position. In NEARâs case, the volume was more than double the typical $40â50âŻM range, confirming the bullish momentum.
Do you check volume before acting