$ATOM ｜5-minute volume surged 12.1x｜price fell 1.4%
Before looking at fund flows, first understand trading volume.
When trading volume surges, bid-ask spreads and slippage often widen too, so chasing the market with market orders may cost more.
Whether volume expands during a breakout is often considered one factor in distinguishing a genuine breakout from a false one: a breakout on low volume is more likely to pull back.
The same data can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.
#ATOM
This is not investment advice. Don’t follow along.
Before looking at fund flows, first understand trading volume.
When trading volume surges, bid-ask spreads and slippage often widen too, so chasing the market with market orders may cost more.
Whether volume expands during a breakout is often considered one factor in distinguishing a genuine breakout from a false one: a breakout on low volume is more likely to pull back.
The same data can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.
#ATOM
This is not investment advice. Don’t follow along.