A quick note: Over $DOS 15 minutes, trading volume was about $3.55 million, 5.8 times the previous average; the price rose 2.4% over the same period.
People often ask how to interpret a surge in volume, so here’s my take.
Trading volume is the amount of coins traded over a period of time; trading value is that amount converted into the quote currency. The volume multiple here compares the current period with the average over a preceding period.
When volume increases near a low and the price doesn’t make a new low, some people see it as a sign that buyers are stepping in. But this still needs to be confirmed by subsequent price action.
Indicators can be wrong, so don’t skip your stop-loss: thinking through what you’ll do if your judgment is wrong matters more than guessing correctly.
People often ask how to interpret a surge in volume, so here’s my take.
Trading volume is the amount of coins traded over a period of time; trading value is that amount converted into the quote currency. The volume multiple here compares the current period with the average over a preceding period.
When volume increases near a low and the price doesn’t make a new low, some people see it as a sign that buyers are stepping in. But this still needs to be confirmed by subsequent price action.
Indicators can be wrong, so don’t skip your stop-loss: thinking through what you’ll do if your judgment is wrong matters more than guessing correctly.