The $Q 1-hour trading volume was about $6.77 million, 4 times the previous average; the price rose 3.94% over the same period.
Everyone, what should we make of a surge in trading volume? Here’s the short version 👇
Trading volumes in futures and spot markets often differ considerably. Futures volume includes a lot of high-frequency trading, so a spike in volume doesn’t mean exactly the same thing in both markets.
After a steep decline, if volume rises but the price doesn’t keep falling, some people interpret it as a sign that buyers are stepping in—but that still needs to be confirmed by subsequent candlesticks.
Don’t let a single number throw you off your plan, and definitely don’t use borrowed money to test what one data point means.
Everyone, what should we make of a surge in trading volume? Here’s the short version 👇
Trading volumes in futures and spot markets often differ considerably. Futures volume includes a lot of high-frequency trading, so a spike in volume doesn’t mean exactly the same thing in both markets.
After a steep decline, if volume rises but the price doesn’t keep falling, some people interpret it as a sign that buyers are stepping in—but that still needs to be confirmed by subsequent candlesticks.
Don’t let a single number throw you off your plan, and definitely don’t use borrowed money to test what one data point means.