$USELESS |5-minute trading volume surged 17.8×|Price rose 1.51%
What does a surge in trading volume mean? Trading volumes in futures and spot markets often differ greatly. Futures volume includes a lot of leveraged trading, so the significance of volume is not quite the same in the two markets.
When volume and price move in sync, signals are easier to interpret. When they diverge, they’re often worth examining more closely—for example, when the price hits a new high while volume keeps declining.
Indicators may be inaccurate, but risk management shouldn’t be skipped. Decide in advance what you’ll do if your judgment is wrong—it matters more than whether your prediction is right.
What does a surge in trading volume mean? Trading volumes in futures and spot markets often differ greatly. Futures volume includes a lot of leveraged trading, so the significance of volume is not quite the same in the two markets.
When volume and price move in sync, signals are easier to interpret. When they diverge, they’re often worth examining more closely—for example, when the price hits a new high while volume keeps declining.
Indicators may be inaccurate, but risk management shouldn’t be skipped. Decide in advance what you’ll do if your judgment is wrong—it matters more than whether your prediction is right.