$DOGE ｜5-minute volume up 32x｜price down 1.39%
Before looking at position size, first understand the volume surge.
When trading volume expands, the bid-ask spread and slippage often widen too, so chasing the market with a market order can be costly.
A volume surge may also be caused by a wave of liquidations: liquidation orders are executed involuntarily, so this kind of volume surge means something different from active trading. You need to consider liquidation data as well.
Sizing your position based on the distance to your stop-loss is much more reliable than placing orders on a whim.
#DOGE
Before looking at position size, first understand the volume surge.
When trading volume expands, the bid-ask spread and slippage often widen too, so chasing the market with a market order can be costly.
A volume surge may also be caused by a wave of liquidations: liquidation orders are executed involuntarily, so this kind of volume surge means something different from active trading. You need to consider liquidation data as well.
Sizing your position based on the distance to your stop-loss is much more reliable than placing orders on a whim.
#DOGE