The stock price can rise even when the number of trades is decreasing.
It sounds strange, but there’s no contradiction here.
The price is determined not by the number of trades, but by the levels at which those trades occur.
For example:
100 trades at $100
and
10 trades at $105
In the second case there are fewer trades, but the final price is higher.
That’s why I try not to draw conclusions about demand based only on the number of trades or the volume.
For $NVDAB or any other bStock, it’s more useful to look at them together:
• price change;
• volume;
• trade direction;
• order book;
• spread.
One indicator tells only part of the story.
#bStocksCIS @BinanceCIS
It sounds strange, but there’s no contradiction here.
The price is determined not by the number of trades, but by the levels at which those trades occur.
For example:
100 trades at $100
and
10 trades at $105
In the second case there are fewer trades, but the final price is higher.
That’s why I try not to draw conclusions about demand based only on the number of trades or the volume.
For $NVDAB or any other bStock, it’s more useful to look at them together:
• price change;
• volume;
• trade direction;
• order book;
• spread.
One indicator tells only part of the story.
#bStocksCIS @BinanceCIS