🐋 The $ENA 5-minute trading volume was approximately $3.56 million, 10.8 times the previous average; the price barely moved during the same period.
When trading volume picks up, many people’s first reaction is that money is flowing in, but that isn’t necessarily the case.
Volume spikes over short periods can be noisy. A spike in a single candlestick may simply be due to one large trade; sustained high volume over a period of time is more meaningful.
Don’t chase a price just because volume has surged. Volatility is usually at its most intense during a volume spike, so using less leverage is a safer approach.
Don’t place an order at the most volatile moment. Wait for the price to stabilize before taking another look.
When trading volume picks up, many people’s first reaction is that money is flowing in, but that isn’t necessarily the case.
Volume spikes over short periods can be noisy. A spike in a single candlestick may simply be due to one large trade; sustained high volume over a period of time is more meaningful.
Don’t chase a price just because volume has surged. Volatility is usually at its most intense during a volume spike, so using less leverage is a safer approach.
Don’t place an order at the most volatile moment. Wait for the price to stabilize before taking another look.