A quick note: trading value over $AIN 1 hours was about $14.39 million, 3.7 times the previous average; the price rose 3.31% over the same period.
People often ask what trading volume means. This is how I understand it.
Every trade has both a buyer and a seller, so higher volume by itself doesn’t mean there are more buyers or that money is flowing in. It just means trading activity has picked up.
Sometimes a surge in volume comes from widespread liquidations: liquidation orders are forced trades, so this kind of volume has a different meaning from voluntary trading. You need to compare it with liquidation data.
The point of understanding an indicator is to be less spooked by any one number—not to use it to pinpoint market tops and bottoms.
People often ask what trading volume means. This is how I understand it.
Every trade has both a buyer and a seller, so higher volume by itself doesn’t mean there are more buyers or that money is flowing in. It just means trading activity has picked up.
Sometimes a surge in volume comes from widespread liquidations: liquidation orders are forced trades, so this kind of volume has a different meaning from voluntary trading. You need to compare it with liquidation data.
The point of understanding an indicator is to be less spooked by any one number—not to use it to pinpoint market tops and bottoms.
