Indicator Notes｜$EIGEN ｜1-hour volume surged 5.9×｜Price rose 5.3%
First, a definition: Trading volume is often called the fuel of market movements. For a trend to continue, it generally needs ongoing support from trading volume—but this is an observation, not a rule.
A common interpretation: After a steep decline, if volume increases but the price stops falling, some may see it as a sign of buyers stepping in. However, this needs to be confirmed by subsequent candlesticks.
Understanding an indicator can help you avoid being spooked by a single number; it is not a way to pinpoint market tops and bottoms.
Any view can turn out to be wrong. Please manage your own risk and returns.
First, a definition: Trading volume is often called the fuel of market movements. For a trend to continue, it generally needs ongoing support from trading volume—but this is an observation, not a rule.
A common interpretation: After a steep decline, if volume increases but the price stops falling, some may see it as a sign of buyers stepping in. However, this needs to be confirmed by subsequent candlesticks.
Understanding an indicator can help you avoid being spooked by a single number; it is not a way to pinpoint market tops and bottoms.
Any view can turn out to be wrong. Please manage your own risk and returns.