$DOT For 15 minutes, trading volume was approximately $3.36 million, 5.9 times the previous average; during the same period, the price fell 1.58%.
A beginner’s burning question: How should I interpret a surge in trading volume?
When volume spikes, order-book spreads and slippage often widen too, making market orders more costly to enter or exit with.
A surge in volume may also be caused by a wave of liquidations: liquidation orders are executed involuntarily, so they mean something different from voluntary trading. You need to compare them with liquidation data to assess what’s happening.
Learning to read indicators is easy; the hard part is sticking to your rules when emotions are at their most extreme.
A beginner’s burning question: How should I interpret a surge in trading volume?
When volume spikes, order-book spreads and slippage often widen too, making market orders more costly to enter or exit with.
A surge in volume may also be caused by a wave of liquidations: liquidation orders are executed involuntarily, so they mean something different from voluntary trading. You need to compare them with liquidation data to assess what’s happening.
Learning to read indicators is easy; the hard part is sticking to your rules when emotions are at their most extreme.