$Lobster 1-hour trading volume was about $5.17 million, 3.9 times the previous average; meanwhile, the price fell 6.93%.
Folks, how should we interpret a surge in trading volume? Here’s the short version.
When volume picks up, bid-ask spreads and slippage often widen, making market orders more costly to execute.
Whether a breakout is accompanied by high volume is often one way to distinguish a true breakout from a false one: a move above resistance on low volume is more likely to fail.
The point of understanding an indicator is to avoid being misled by the numbers—not to use it to predict tops and bottoms.
Folks, how should we interpret a surge in trading volume? Here’s the short version.
When volume picks up, bid-ask spreads and slippage often widen, making market orders more costly to execute.
Whether a breakout is accompanied by high volume is often one way to distinguish a true breakout from a false one: a move above resistance on low volume is more likely to fail.
The point of understanding an indicator is to avoid being misled by the numbers—not to use it to predict tops and bottoms.