$SOXLB 5-minute trading volume was approximately $1.19 million, 16.8 times the previous average; the price was nearly unchanged over the same period.
Guys, how should we interpret a surge in trading volume? Explain it in one paragraph.
Every trade has both a buyer and a seller, so higher volume alone doesn’t mean there are more buyers or that money is flowing in—it only means that trading is happening more frequently.
A rise on high volume is often seen as an advance backed by trading activity, while a drop on high volume is often interpreted as genuine selling pressure. But these are just rules of thumb.
All indicators describe market activity that has already happened, and prices can still move in the opposite direction.
#SOXLB
Guys, how should we interpret a surge in trading volume? Explain it in one paragraph.
Every trade has both a buyer and a seller, so higher volume alone doesn’t mean there are more buyers or that money is flowing in—it only means that trading is happening more frequently.
A rise on high volume is often seen as an advance backed by trading activity, while a drop on high volume is often interpreted as genuine selling pressure. But these are just rules of thumb.
All indicators describe market activity that has already happened, and prices can still move in the opposite direction.
#SOXLB