A note: Trading volume over $ETH 5 minutes was about $169 million, 28.5 times the previous average; prices fell 0.39% over the same period.
People often ask how to interpret trading volume. This is how I see it.
Unusual trading activity sometimes appears before price moves, so many people treat an abnormal surge in volume as a signal to pay attention to a coin. The direction, though, is something to watch as the candlesticks develop.
When volume surges after a big run-up but the price barely rises, this is often called “high volume with stagnant prices.” Many people see it as a sign that disagreement between bulls and bears is growing.
Learning to read indicators is easy; the hard part is sticking to your plan when emotions are running high.
#ETH
NFA, DYOR.
People often ask how to interpret trading volume. This is how I see it.
Unusual trading activity sometimes appears before price moves, so many people treat an abnormal surge in volume as a signal to pay attention to a coin. The direction, though, is something to watch as the candlesticks develop.
When volume surges after a big run-up but the price barely rises, this is often called “high volume with stagnant prices.” Many people see it as a sign that disagreement between bulls and bears is growing.
Learning to read indicators is easy; the hard part is sticking to your plan when emotions are running high.
#ETH
NFA, DYOR.
