$ARIA ｜1-hour trading volume surged 11.8x｜Price rose 8.09%
What does a surge in trading volume actually indicate? Multiples are relative: a several-fold increase in a coin that normally trades little may be caused by just a few large orders, while the same multiple for a major coin is much rarer.
When volume and price move in the same direction, the trend is clearer. When they diverge, it’s worth looking more closely—for example, when prices rise while trading volume keeps shrinking.
Sizing your position based on the stop-loss distance is far more reliable than simply guessing.
What does a surge in trading volume actually indicate? Multiples are relative: a several-fold increase in a coin that normally trades little may be caused by just a few large orders, while the same multiple for a major coin is much rarer.
When volume and price move in the same direction, the trend is clearer. When they diverge, it’s worth looking more closely—for example, when prices rise while trading volume keeps shrinking.
Sizing your position based on the stop-loss distance is far more reliable than simply guessing.