$BNB 5Trading volume over the minute was about $9.17 million, 8.5 times the previous average; the price barely moved during the same period.
When trading volume surges, many people’s first thought is that money is flowing in, but that isn’t necessarily the case.
When trading volume surges, bid-ask spreads and slippage often widen as well, making market orders costly to enter or exit with.
A surge in trading volume at high price levels with little price increase is often called “high-volume stagnation.” Many people take it as a sign that disagreement between buyers and sellers is growing.
Extreme readings often come with more violent volatility. At times like these, it’s better to reduce leverage rather than make a large bet.
#BNB
When trading volume surges, many people’s first thought is that money is flowing in, but that isn’t necessarily the case.
When trading volume surges, bid-ask spreads and slippage often widen as well, making market orders costly to enter or exit with.
A surge in trading volume at high price levels with little price increase is often called “high-volume stagnation.” Many people take it as a sign that disagreement between buyers and sellers is growing.
Extreme readings often come with more violent volatility. At times like these, it’s better to reduce leverage rather than make a large bet.
#BNB
