$DOT ｜5-minute trading volume surged 11.3x｜Price rose 1.2%
What does a surge in trading volume mean? 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 only means trading activity has picked up.
A surge in volume can also result from widespread liquidations: liquidation orders are executed involuntarily, so this kind of volume means something different from active trading. You need to consider liquidation activity as well.
Indicators can be inaccurate, but risk management shouldn’t be neglected: deciding in advance what to do if you’re wrong matters more than guessing correctly.
This is just my personal opinion, not investment advice.
What does a surge in trading volume mean? 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 only means trading activity has picked up.
A surge in volume can also result from widespread liquidations: liquidation orders are executed involuntarily, so this kind of volume means something different from active trading. You need to consider liquidation activity as well.
Indicators can be inaccurate, but risk management shouldn’t be neglected: deciding in advance what to do if you’re wrong matters more than guessing correctly.
This is just my personal opinion, not investment advice.