🐋 $LTC 5-minute trading volume was about $1.38 million, 9.5 times the previous average; the price was almost unchanged over the same period.
When volume surges, many people’s first thought is that big money is moving in, but that isn’t necessarily the case.
Unusual trading activity often shows up before price moves, so some people treat an abnormal spike in volume as a signal to keep an eye on a coin. You’ll have to wait for the candlesticks to form to see which way it goes.
After a big rally, rising volume with little further price gain is often called “high-volume stagnation.” Many people see it as a sign that buyers and sellers are increasingly divided.
Keep enough margin to support leveraged positions, so a single wick doesn’t wipe you out.
For my personal notes only; not a specific trading recommendation.
When volume surges, many people’s first thought is that big money is moving in, but that isn’t necessarily the case.
Unusual trading activity often shows up before price moves, so some people treat an abnormal spike in volume as a signal to keep an eye on a coin. You’ll have to wait for the candlesticks to form to see which way it goes.
After a big rally, rising volume with little further price gain is often called “high-volume stagnation.” Many people see it as a sign that buyers and sellers are increasingly divided.
Keep enough margin to support leveraged positions, so a single wick doesn’t wipe you out.
For my personal notes only; not a specific trading recommendation.