A note: Trading volume over $FIL 1 hours was approximately $28.22 million, 6.7 times the previous average; the price rose 3.66% over the same period.
People often ask how to interpret trading volume. This is how I see it.
Multiples are relative: for a normally quiet coin, a several-fold increase in volume might just be caused by a few large orders. The same increase in a top coin would be much rarer.
After a single volume spike, if volume quickly falls back, it was probably just a brief pulse. If elevated volume can be sustained, that’s much more interesting.
Extreme readings usually come with greater volatility. At times like these, it’s better to reduce your position rather than make a big bet.
#FIL
The data is from public sources; verify it for yourself.
People often ask how to interpret trading volume. This is how I see it.
Multiples are relative: for a normally quiet coin, a several-fold increase in volume might just be caused by a few large orders. The same increase in a top coin would be much rarer.
After a single volume spike, if volume quickly falls back, it was probably just a brief pulse. If elevated volume can be sustained, that’s much more interesting.
Extreme readings usually come with greater volatility. At times like these, it’s better to reduce your position rather than make a big bet.
#FIL
The data is from public sources; verify it for yourself.