Latest data: $PYTH ｜Volume up 45x in 5 minutes｜Price almost unchanged
Meaning: Trading volume is often called the fuel of price movements: for a trend to continue, volume generally needs to keep up. But this is an observation, not a law.
A common interpretation: A surge in volume sometimes comes from waves of liquidations. Liquidation orders are forced trades, so this kind of volume has a different meaning from voluntary buying and selling. Check liquidation data to assess it.
Understanding how to read indicators is easy; the hard part is sticking to the rules when emotions are running high.
Just my personal opinion, not investment advice.
Meaning: Trading volume is often called the fuel of price movements: for a trend to continue, volume generally needs to keep up. But this is an observation, not a law.
A common interpretation: A surge in volume sometimes comes from waves of liquidations. Liquidation orders are forced trades, so this kind of volume has a different meaning from voluntary buying and selling. Check liquidation data to assess it.
Understanding how to read indicators is easy; the hard part is sticking to the rules when emotions are running high.
Just my personal opinion, not investment advice.
