$SEI 1 The hourly trading volume was about $5.11 million, 5.6 times the previous average; the price was almost unchanged over the same period.
Folks, how should we interpret a surge in trading volume? Here’s the short version.
Volume spikes over short periods can be noisy. A large trade on a single candlestick may simply be one concentrated transaction; sustained high volume over a period of time is more meaningful.
Price movements are clearer when volume and price move in sync. When they diverge, it’s worth looking more closely—for example, when prices rise while trading volume keeps falling.
Don’t chase trades during the most volatile minutes. Wait for the price to settle before taking another look.
Folks, how should we interpret a surge in trading volume? Here’s the short version.
Volume spikes over short periods can be noisy. A large trade on a single candlestick may simply be one concentrated transaction; sustained high volume over a period of time is more meaningful.
Price movements are clearer when volume and price move in sync. When they diverge, it’s worth looking more closely—for example, when prices rise while trading volume keeps falling.
Don’t chase trades during the most volatile minutes. Wait for the price to settle before taking another look.