$ASTER 5-minute trading volume was approximately $1.77 million, 20 times the previous average; the price fell 0.34% over the same period.
Guys, how should we interpret a surge in trading volume? Here’s the short version 👇
Trading volumes in futures and spot markets often differ significantly. Futures volume includes a lot of leveraged trading, so a spike in each market doesn’t necessarily mean the same thing.
When volume rises at a low price and the price stops making new lows, some people interpret it as a sign that buyers are stepping in. But the subsequent price action still needs to confirm this.
Comparing several indicators is safer than looking at just one, but even more signals can’t provide a definitive answer.
Guys, how should we interpret a surge in trading volume? Here’s the short version 👇
Trading volumes in futures and spot markets often differ significantly. Futures volume includes a lot of leveraged trading, so a spike in each market doesn’t necessarily mean the same thing.
When volume rises at a low price and the price stops making new lows, some people interpret it as a sign that buyers are stepping in. But the subsequent price action still needs to confirm this.
Comparing several indicators is safer than looking at just one, but even more signals can’t provide a definitive answer.