A somewhat painful truth: the trading volume over $XAUT 5 minutes was about $1.51 million, 42.2 times the previous average; the price barely moved during the same period.
A sudden spike in volume only proves that people are more active—it doesn’t prove who’s right.
On a more serious note, minute-level volume spikes can be quite random. A large volume on a single candlestick may just reflect a one-off cluster of trades; several consecutive high-volume candles are much more informative.
Don’t change your original plan based on a single indicator, and don’t use borrowed money to test a thesis.
#XAUT
A sudden spike in volume only proves that people are more active—it doesn’t prove who’s right.
On a more serious note, minute-level volume spikes can be quite random. A large volume on a single candlestick may just reflect a one-off cluster of trades; several consecutive high-volume candles are much more informative.
Don’t change your original plan based on a single indicator, and don’t use borrowed money to test a thesis.
#XAUT