$ETC ｜5-minute volume surged 15.8×｜price rose 0.51%
Before looking at position size, first understand what a surge in volume means.
Every trade has both a buyer and a seller, so higher volume by itself doesn’t mean there are more buyers or that money is flowing in. It simply means that more shares are changing hands.
When volume expands at a high price level but the price barely rises, it’s often called “high-volume stagnation.” Many people see it as a sign of growing disagreement between buyers and sellers.
Calculating your order size based on where you place your stop-loss is much more reliable than placing orders by feel.
Before looking at position size, first understand what a surge in volume means.
Every trade has both a buyer and a seller, so higher volume by itself doesn’t mean there are more buyers or that money is flowing in. It simply means that more shares are changing hands.
When volume expands at a high price level but the price barely rises, it’s often called “high-volume stagnation.” Many people see it as a sign of growing disagreement between buyers and sellers.
Calculating your order size based on where you place your stop-loss is much more reliable than placing orders by feel.