$PONS ｜1-hour trading volume up 4.2x｜Price rose 3.41%
Before discussing capital flows, let's first understand what a surge in volume means.
Trading volume is often compared to fuel for the market: for a trend to continue, trading activity usually needs to keep up—but that's an observation, not a rule.
After a surge in volume, if it quickly falls back, it often turns out to be just a brief flurry of activity. If volume stays elevated over time, that's more promising.
Calculating your position size based on your stop-loss distance is much more reliable than guessing.
#PONS
Be aware of the risks, and make your own decisions.
Before discussing capital flows, let's first understand what a surge in volume means.
Trading volume is often compared to fuel for the market: for a trend to continue, trading activity usually needs to keep up—but that's an observation, not a rule.
After a surge in volume, if it quickly falls back, it often turns out to be just a brief flurry of activity. If volume stays elevated over time, that's more promising.
Calculating your position size based on your stop-loss distance is much more reliable than guessing.
#PONS
Be aware of the risks, and make your own decisions.