The jokester’s take: Trading volume over $CT 1 hours was about $7.45 million, 13.2 times the previous average; the price was almost unchanged over the same period.
A sudden spike in trading only proves that people are more active; it doesn’t tell us which side is winning.
For a more serious explanation, changes in trading volume sometimes show up before price movements. That’s why many people treat a sudden surge in volume as a cue to keep an eye on the coin. The candlestick chart will have to show which way it goes.
Indicators can fail, so don’t skip your stop-loss: deciding in advance what you’ll do if you’re wrong matters more than getting the prediction right.
A sudden spike in trading only proves that people are more active; it doesn’t tell us which side is winning.
For a more serious explanation, changes in trading volume sometimes show up before price movements. That’s why many people treat a sudden surge in volume as a cue to keep an eye on the coin. The candlestick chart will have to show which way it goes.
Indicators can fail, so don’t skip your stop-loss: deciding in advance what you’ll do if you’re wrong matters more than getting the prediction right.