#opbnb #ETH #Layer2 #BTC #crypto2023 $BTC $ETH $BNB 🟢Trading Fundamentals🟢

👉The price-volume relationship in trading is a fundamental concept in technical analysis. It suggests that the trading volume, which represents the number of shares or contracts traded in a given period, can provide valuable insights into price movements. Here are some key points about this relationship.

👉 When prices move in the same direction as the trading volume (i.e., both increasing or both decreasing), it is seen as a confirmation of the current trend. For example, if prices are rising, and trading volume is also increasing, it suggests strong bullish sentiment.

👉Divergence occurs when prices and trading volume move in opposite directions. For instance, if prices are rising, but trading volume is declining, it could indicate weakening bullish momentum and a potential reversal.

👉High trading volume often accompanies price breakouts from key support or resistance levels. This suggests that a significant number of market participants are involved in the price movement, increasing the validity of the breakout.

👉 Sudden spikes in trading volume, especially after an extended trend, can indicate potential reversals. For example, a sharp increase in volume during a downtrend may signal a capitulation phase or a reversal to an uptrend.

👉Higher trading volume typically implies greater liquidity, making it easier for traders to enter or exit positions without significantly impacting the price.

👉 Extremely high trading volume, often accompanied by wide price swings, can signal market exhaustion. This may lead to a period of consolidation or a trend reversal.