$FARTCOIN 5 minutes: trading volume was about $1.06 million, 16.9 times the previous average; the price fell 0.64% over the same period.
This figure is a good opportunity to talk about volume spikes.
Multiples are relative: for a coin that usually sees little trading, a several-fold volume spike may be caused by just a few large orders. The same multiple is much rarer for a top coin.
If volume quickly falls back after a one-off spike, it was probably just a brief burst. Sustained elevated volume is more worth paying attention to.
Indicators can be wrong, so stop-losses are essential: deciding in advance what to do if you’re wrong matters more than getting the prediction right.
This figure is a good opportunity to talk about volume spikes.
Multiples are relative: for a coin that usually sees little trading, a several-fold volume spike may be caused by just a few large orders. The same multiple is much rarer for a top coin.
If volume quickly falls back after a one-off spike, it was probably just a brief burst. Sustained elevated volume is more worth paying attention to.
Indicators can be wrong, so stop-losses are essential: deciding in advance what to do if you’re wrong matters more than getting the prediction right.
