Technical Note｜$LTC ｜1-hour trading volume up 6×｜Price barely moved
Definition: Unusual trading activity often shows up before price movements, so many people use abnormal volume as a cue to watch a coin. The direction, however, has to wait for the candlesticks to show it.
Common interpretation: Whether trading volume expands during a breakout is often considered one factor in distinguishing a valid breakout from a failed one: a breakout on declining volume is more likely to reverse.
Comparing several indicators is more reliable than looking at just one, but even more signals can't provide a definitive conclusion.
Definition: Unusual trading activity often shows up before price movements, so many people use abnormal volume as a cue to watch a coin. The direction, however, has to wait for the candlesticks to show it.
Common interpretation: Whether trading volume expands during a breakout is often considered one factor in distinguishing a valid breakout from a failed one: a breakout on declining volume is more likely to reverse.
Comparing several indicators is more reliable than looking at just one, but even more signals can't provide a definitive conclusion.