$GWEI 1-hour trading volume was about $5.01 million, 10.9 times the previous average; the price rose 5.03% over the same period.
I used to think that higher volume simply meant more buyers. Later, I realized that every trade has both a buyer and a seller. Higher volume only means more active turnover; to tell whether buyers are more eager or sellers are more urgent, you have to look at the price direction.
When volume and price move in sync, the signal is easier to interpret. Divergence is often more worth watching—for example, when the price rises while trading volume keeps falling.
Extreme readings usually come with greater volatility. At such times, it’s better to reduce your position rather than make a big bet.
Don’t treat this as a basis for making trades.
I used to think that higher volume simply meant more buyers. Later, I realized that every trade has both a buyer and a seller. Higher volume only means more active turnover; to tell whether buyers are more eager or sellers are more urgent, you have to look at the price direction.
When volume and price move in sync, the signal is easier to interpret. Divergence is often more worth watching—for example, when the price rises while trading volume keeps falling.
Extreme readings usually come with greater volatility. At such times, it’s better to reduce your position rather than make a big bet.
Don’t treat this as a basis for making trades.