A quick note: Trading volume over $BTW 1 hours was about $40.87 million, 4.6 times the previous average; over the same period, the price fell 16.69%.
People often ask how to interpret trading volume. Here’s how I think about it.
Trading volume is often called the fuel for price movements: for a trend to continue, trading activity usually needs to keep pace. But that’s an observation, not a rule.
When volume and price move in sync, the trend tends to be clearer. When they diverge, it’s worth paying closer attention—for example, when the price rises while volume steadily declines.
The point of understanding an indicator is to be less rattled by a single number, not to use it to predict tops and bottoms precisely.
People often ask how to interpret trading volume. Here’s how I think about it.
Trading volume is often called the fuel for price movements: for a trend to continue, trading activity usually needs to keep pace. But that’s an observation, not a rule.
When volume and price move in sync, the trend tends to be clearer. When they diverge, it’s worth paying closer attention—for example, when the price rises while volume steadily declines.
The point of understanding an indicator is to be less rattled by a single number, not to use it to predict tops and bottoms precisely.