🐋 $SOXLB 1 had an hourly trading volume of approximately $5.35 million, 4 times its previous average; during the same period, its price fell 2.95%.
When trading volume picks up, many people’s first reaction is that money is flowing in, but that’s not necessarily the case.
Multiples are relative: a several-fold increase in volume for a usually quiet coin may come from just a few large trades, while the same increase for a major coin is much less common.
Rising volume alongside a price increase is often seen as a sign that buying is supporting the rise; rising volume alongside a price drop is often seen as a sign of heavier selling pressure. But these are just rules of thumb.
Don’t change your usual approach because of a single number, and never use borrowed money to test a hunch.
#SOXLB
When trading volume picks up, many people’s first reaction is that money is flowing in, but that’s not necessarily the case.
Multiples are relative: a several-fold increase in volume for a usually quiet coin may come from just a few large trades, while the same increase for a major coin is much less common.
Rising volume alongside a price increase is often seen as a sign that buying is supporting the rise; rising volume alongside a price drop is often seen as a sign of heavier selling pressure. But these are just rules of thumb.
Don’t change your usual approach because of a single number, and never use borrowed money to test a hunch.
#SOXLB