$BAT 1-hour trading volume was approximately $9.23 million, 3.6 times the previous average; the price rose 9.45% over the same period.
A beginner’s honest question: What does a surge in trading volume actually mean?
When volume surges, bid-ask spreads and slippage often widen, making market orders costly to enter or exit.
I treat unusual trading volume as a signal worth watching, not a reason to act immediately. I let the price reveal the direction.
The same reading can mean very different things in different market conditions, so don’t blindly apply a one-size-fits-all rule.