$NIGHT 1-hour trading volume was about $5.44 million, 6 times the previous average; the price rose 0.98% over the same period.
Let’s break that number down.
Unusual trading activity sometimes appears before price moves, so many people treat an abnormal spike in volume as a signal to keep an eye on a coin. You have to wait for the price to move to see which way it goes.
When volume and price move in the same direction, the trend is clearer. When they diverge, it can be even more worth examining—for example, when the price rises while trading volume keeps shrinking.
The same data can mean very different things in different market conditions, so don’t apply any one rule mechanically.
This content is for reference only. Make your own decisions.
Let’s break that number down.
Unusual trading activity sometimes appears before price moves, so many people treat an abnormal spike in volume as a signal to keep an eye on a coin. You have to wait for the price to move to see which way it goes.
When volume and price move in the same direction, the trend is clearer. When they diverge, it can be even more worth examining—for example, when the price rises while trading volume keeps shrinking.
The same data can mean very different things in different market conditions, so don’t apply any one rule mechanically.
This content is for reference only. Make your own decisions.