Market Notes｜$ADA ｜5-minute volume surges 8.5x｜Price nearly unchanged
First, a definition: A spike in trading volume usually occurs when news breaks, a key price level is breached, large orders are filled, or mass liquidations take place.
A common interpretation: When volume surges while the price remains basically unchanged, it means buyers and sellers are exchanging positions heavily at this price. To see which way the price moves next, watch for which side gives way first.
Extreme readings usually signal more violent price swings. This is when you should reduce leverage rather than place a large bet.
First, a definition: A spike in trading volume usually occurs when news breaks, a key price level is breached, large orders are filled, or mass liquidations take place.
A common interpretation: When volume surges while the price remains basically unchanged, it means buyers and sellers are exchanging positions heavily at this price. To see which way the price moves next, watch for which side gives way first.
Extreme readings usually signal more violent price swings. This is when you should reduce leverage rather than place a large bet.