High Trading Volume Doesn’t Always Mean Strong Demand
I used to think rising volume was always a positive sign. But volume alone doesn’t tell the full story.
A coin can attract heavy trading during a sell-off just as easily as during a rally. Every trade has a buyer and a seller, so the important question is: which side is pushing the price?
When I look at a sudden move, I try to check three things:
- Is price rising along with volume?
- Are buyers holding the move, or is price quickly falling back?
- Is there a real reason behind the activity, or just short-term excitement?
High volume can confirm that something is happening. It doesn’t automatically tell us whether the move will continue.
I’d rather miss the first part of a rally than enter without understanding what is driving it.
When you see a coin with a sudden volume spike, what do you check first?
#Crypto #Trading #BinanceSquare $BTC
#USOctoberNFP-AreRateCutsStillPossible
I used to think rising volume was always a positive sign. But volume alone doesn’t tell the full story.
A coin can attract heavy trading during a sell-off just as easily as during a rally. Every trade has a buyer and a seller, so the important question is: which side is pushing the price?
When I look at a sudden move, I try to check three things:
- Is price rising along with volume?
- Are buyers holding the move, or is price quickly falling back?
- Is there a real reason behind the activity, or just short-term excitement?
High volume can confirm that something is happening. It doesn’t automatically tell us whether the move will continue.
I’d rather miss the first part of a rally than enter without understanding what is driving it.
When you see a coin with a sudden volume spike, what do you check first?
#Crypto #Trading #BinanceSquare $BTC
#USOctoberNFP-AreRateCutsStillPossible
