🐋 $LINK 5-minute trading volume was approximately $6.88 million, 31.2 times the previous average; the price fell 0.91% over the same period.
When trading volume surges, many people instinctively assume big money is coming in, but that’s not necessarily the case.
When trading volume surges, bid-ask spreads and slippage often increase too, so chasing the move with a market order can be costly.
The same reading can mean completely different things in different market conditions, so don’t blindly apply a one-size-fits-all rule.
This is not a trading signal.
When trading volume surges, many people instinctively assume big money is coming in, but that’s not necessarily the case.
When trading volume surges, bid-ask spreads and slippage often increase too, so chasing the move with a market order can be costly.
The same reading can mean completely different things in different market conditions, so don’t blindly apply a one-size-fits-all rule.
This is not a trading signal.