Market Notes | $SOXLB | Volume surged 4x in 1 hour | Price fell 2.95%
First, a definition: Trading volumes in futures and spot markets often differ significantly. Futures volume includes a lot of high-frequency turnover, so volume in the two markets does not mean exactly the same thing.
A common way to read it: Trends are clearer when volume and price move in the same direction. When they diverge, it’s worth taking a closer look—for example, when prices rise while volume keeps falling.
The point of understanding this indicator is to avoid being misled by the numbers, not to use it to predict price movements precisely.
First, a definition: Trading volumes in futures and spot markets often differ significantly. Futures volume includes a lot of high-frequency turnover, so volume in the two markets does not mean exactly the same thing.
A common way to read it: Trends are clearer when volume and price move in the same direction. When they diverge, it’s worth taking a closer look—for example, when prices rise while volume keeps falling.
The point of understanding this indicator is to avoid being misled by the numbers, not to use it to predict price movements precisely.