A note: The $PONS 1-hour trading volume was about $5.33 million, 4.5 times the previous average; during the same period, the price fell 5.71%.
People often ask what it means when volume surges. This is how I understand it.
“Several times” is relative: a several-fold surge in a usually quiet coin may be caused by just one or two large trades, while the same multiple in a major coin is much rarer.
Whether volume increases during a breakout is often considered one factor in judging whether the breakout is valid: a move above resistance on low volume is more likely to fail.
Don’t place orders during the fastest few minutes of a market move. Wait for the price to finish moving, then take a look.
People often ask what it means when volume surges. This is how I understand it.
“Several times” is relative: a several-fold surge in a usually quiet coin may be caused by just one or two large trades, while the same multiple in a major coin is much rarer.
Whether volume increases during a breakout is often considered one factor in judging whether the breakout is valid: a move above resistance on low volume is more likely to fail.
Don’t place orders during the fastest few minutes of a market move. Wait for the price to finish moving, then take a look.
