Price and trading volume answer different questions. Let’s clarify what they mean.
Price change describes how much the price moved between two points in time. Trading volume describes how much trading took place during that period. Prices can rise while trading is active, but the two don’t always move in sync. Neither figure alone tells you who was buying or selling, let alone what the market will do next. Before looking at the two figures together, make sure they cover the same time period and trading pair.
Next time you see “price and volume rising together,” first check that the price change and trading volume cover the same period, then see what each is being compared with.
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Price change describes how much the price moved between two points in time. Trading volume describes how much trading took place during that period. Prices can rise while trading is active, but the two don’t always move in sync. Neither figure alone tells you who was buying or selling, let alone what the market will do next. Before looking at the two figures together, make sure they cover the same time period and trading pair.
Next time you see “price and volume rising together,” first check that the price change and trading volume cover the same period, then see what each is being compared with.
#CryptoKnowledge