The crypto-market soap opera has another update: $APT 1-hour trading volume was about $5.74 million, 4.3 times the previous average; the price was almost unchanged over the same period.
A sudden increase in trading only proves that people got busier—it doesn’t prove which side is right.
Seriously, short-term volume spikes are more likely to be random, and a surge in volume on a single candlestick may simply be due to one large order. Sustained high volume over a period of time would be more convincing.
Understanding this indicator is about avoiding being spooked by the numbers, not using it to pinpoint tops and bottoms.
A sudden increase in trading only proves that people got busier—it doesn’t prove which side is right.
Seriously, short-term volume spikes are more likely to be random, and a surge in volume on a single candlestick may simply be due to one large order. Sustained high volume over a period of time would be more convincing.
Understanding this indicator is about avoiding being spooked by the numbers, not using it to pinpoint tops and bottoms.