$BTC 5 The trading volume was about $209 million, 16 times the previous average, while the price barely moved during the same period.
Let’s use this data to break down what a surge in volume means.
Every trade has both a buyer and a seller, so a surge in volume alone doesn’t mean there are more buyers or that money is flowing in; it simply means trading has become more active.
Don’t chase a move just because of the multiple. Volatility is often higher when volume surges, so reducing leverage is the safer choice.
Sizing your position based on the distance to your stop-loss is much more reliable than going by gut feel.
#BTC
Let’s use this data to break down what a surge in volume means.
Every trade has both a buyer and a seller, so a surge in volume alone doesn’t mean there are more buyers or that money is flowing in; it simply means trading has become more active.
Don’t chase a move just because of the multiple. Volatility is often higher when volume surges, so reducing leverage is the safer choice.
Sizing your position based on the distance to your stop-loss is much more reliable than going by gut feel.
#BTC