Just saw: $ALT 5-minute trading volume was about $1.23 million, 10 times the previous average; the price rose 1.65% over the same period.
People are always asking how to read trading volume, so here’s my take.
Volume should be read together with price: the price level and the length of the wicks often tell you more than the volume itself.
After a big drop, if volume picks up but the price doesn’t make a new low, some people interpret that as a sign of buyers stepping in—but it still needs confirmation from subsequent candles.
If you’re using leverage, keep enough margin in your position. Don’t let a single wick liquidate you.
People are always asking how to read trading volume, so here’s my take.
Volume should be read together with price: the price level and the length of the wicks often tell you more than the volume itself.
After a big drop, if volume picks up but the price doesn’t make a new low, some people interpret that as a sign of buyers stepping in—but it still needs confirmation from subsequent candles.
If you’re using leverage, keep enough margin in your position. Don’t let a single wick liquidate you.