$IDOL ｜1-hour volume surged 8.7x｜Price fell 32.85%
What does a surge in volume actually indicate? When volume surges, order-book spreads and slippage often widen as well, so chasing with market orders may cost more.
Whether volume increases during a breakout is often considered one factor in distinguishing a valid breakout from a false one: a breakout on low volume is more likely to fail.
Understanding this indicator is about avoiding being misled by a single number, not using it to predict tops or bottoms.
Personal notes only; not financial advice.
What does a surge in volume actually indicate? When volume surges, order-book spreads and slippage often widen as well, so chasing with market orders may cost more.
Whether volume increases during a breakout is often considered one factor in distinguishing a valid breakout from a false one: a breakout on low volume is more likely to fail.
Understanding this indicator is about avoiding being misled by a single number, not using it to predict tops or bottoms.
Personal notes only; not financial advice.