$MSTRB ｜5-minute trading volume surged 16.6x｜Price fell 0.43%
Before looking at positions, first understand what a surge in trading volume means.
Trading volume is often called the fuel for price movements: for a trend to continue, trading activity generally needs to keep up, but this is a rule of thumb, not a law.
After a substantial drop, if trading volume rises but the price stops falling, some people may interpret this as a sign of buying support—but this needs to be confirmed by subsequent candlesticks.
Calculating your position size based on where you place your stop-loss is much more reliable than placing trades by instinct.
Before looking at positions, first understand what a surge in trading volume means.
Trading volume is often called the fuel for price movements: for a trend to continue, trading activity generally needs to keep up, but this is a rule of thumb, not a law.
After a substantial drop, if trading volume rises but the price stops falling, some people may interpret this as a sign of buying support—but this needs to be confirmed by subsequent candlesticks.
Calculating your position size based on where you place your stop-loss is much more reliable than placing trades by instinct.