$BAT ｜1-hour volume up 4x｜price down 2.53%
Before discussing capital flows, let's first understand a volume surge.
Trading volume is often compared to fuel for price: for a trend to continue, volume usually needs to keep pace. But this is a rule of thumb, not a law.
A surge in volume with price basically unchanged means bulls and bears are trading actively at the current price level. Which way things move next depends on which side gives way first.
Rare readings usually signal more dramatic swings. This is when you should reduce leverage, not add to your position.
Before discussing capital flows, let's first understand a volume surge.
Trading volume is often compared to fuel for price: for a trend to continue, volume usually needs to keep pace. But this is a rule of thumb, not a law.
A surge in volume with price basically unchanged means bulls and bears are trading actively at the current price level. Which way things move next depends on which side gives way first.
Rare readings usually signal more dramatic swings. This is when you should reduce leverage, not add to your position.