Indicator Notes｜$CAP ｜1-hour volume surged 17.7x｜Price fell 5.62%
First, a definition: When trading volume expands, the bid-ask spread and slippage often widen too, so chasing with a market order can cost more.
How to read it: Whether a breakout is accompanied by high volume is often seen as one factor for distinguishing a genuine breakout from a false one. Breakouts on declining volume are often more likely to fail.
The same reading can mean very different things in different market conditions, so don’t apply any single rule mechanically.
#CAP
Trading involves risk. Enter the market with caution.
First, a definition: When trading volume expands, the bid-ask spread and slippage often widen too, so chasing with a market order can cost more.
How to read it: Whether a breakout is accompanied by high volume is often seen as one factor for distinguishing a genuine breakout from a false one. Breakouts on declining volume are often more likely to fail.
The same reading can mean very different things in different market conditions, so don’t apply any single rule mechanically.
#CAP
Trading involves risk. Enter the market with caution.